2011City of Bangor, MaineComprehensive Annual Financial Report for Fiscal YearJune 30,2011
CITY OF BANGOR, MAINE
Comprehensive Annual Financial Report
For the Fiscal Year Ended June 30, 2011
Prepared by:
Debbie Cyr, Finance Director
David Little, Tax Collector/Deputy Treasurer
CITY OF BANGOR, MAINE
Comprehensive Annual Financial Report Table of Contents
For the Fiscal Year Ended June 30, 2011
INTRODUCTORY SECTION Page
Letter of Transmittal I - 1
GFOA Certificate of Achievement I - 7
Organizational Chart I - 8
Elected Officials and Principal Administrative Officers I - 9
FINANCIAL SECTION
Report of Independent Auditors II - 1
Management’s Discussion and Analysis II - 3
Basic Financial Statements: Exhibit
Government-wide Financial Statements:
Statement of Net Assets 1 II - 17
Statement of Activities 2 II - 18
Fund Financial Statements:
Balance Sheet - Governmental Funds 3 II - 19
Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds 4 II - 20
Reconciliation of the Statement of Revenues, Expenditures
and Changes in Fund Balances of Governmental Funds to the Statement of Activities 5 II - 21
Statement of Revenues, Expenditures and Changes in
Unassigned Fund Balance - Budget and Actual - General Fund 6 II - 22 Statement of Net Assets – Proprietary Funds 7 II - 23
Statement of Revenues, Expenses and Changes in
Net Assets – Proprietary Funds 8 II - 25 Statement of Cash Flows – Proprietary Funds 9 II - 26
Statement of Fiduciary Net Assets – Fiduciary Funds 10 II - 28
Notes to the Financial Statements II - 29
Required Supplemental Information II - 56
CITY OF BANGOR, MAINE Table of Contents, Continued
Schedule Page
Combining and Individual Fund Statements and Schedules:
Balance Sheet – General Fund A – 1 II - 57
Schedule of Revenues, Expenditures and Changes in Unassigned Fund Balance – Budget and Actual – Budgetary
Basis – General Fund A – 2 II - 58
Combining Balance Sheet – Nonmajor Governmental Funds B – 1 II - 62
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances – Nonmajor Governmental Funds B – 2 II - 63
Combining Balance Sheet – Nonmajor Special Revenue Funds B – 3 II - 64
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances – Nonmajor Special Revenue Funds B – 4 II - 65
Combining Balance Sheet – Nonmajor Permanent Funds B – 5 II - 66
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances – Nonmajor Permanent Funds B – 6 II - 67
Combining Statement of Net Assets – Nonmajor Proprietary Funds C – 1 II – 68
Combining Statement of Revenues, Expenses and
Changes in Net Assets – Nonmajor Proprietary Funds C – 2 II - 70
Combining Statement of Cash Flows - Nonmajor Proprietary Funds C – 3 II - 71
Schedules of Revenues, Expenditures and Encumbrances – Budget
and Actual Budgetary Basis:
Sewer Utility Enterprise Fund C – 4 II - 73
Airport Enterprise Fund C – 5 II - 74
Park Woods Enterprise Fund C – 6 II - 75
Parking Enterprise Fund C – 7 II - 76
Bass Park Enterprise Fund C – 8 II - 77
Municipal Golf Course Enterprise Fund C – 9 II - 78
Economic Development Enterprise Fund C – 10 II - 79
Fiduciary Funds:
Statement of Change in Assets and Liabilities – Agency Fund D – 1 II - 80
Capital Assets Used in the Operation of Governmental Funds:
Schedule of Changes by Function and Activity E – 1 II - 81
Other Information:
Assessed Valuation, Commitment and Collections F – 1 II - 82
Unassigned Fund Balance Sufficiency Calculation F – 2 II - 83
CITY OF BANGOR, MAINE Table of Contents, Continued
STATISTICAL SECTION
Table Page Financial Trends:
Net Assets by Component 1 III – 1
Changes in Net Assets 2 III – 2 Governmental Activities Tax Revenues by Source 3 III – 5
Fund Balances of Governmental Funds 4 III – 6
Changes in Funds Balances of Governmental Funds 5 III – 7
Revenue Capacity:
Assessed Value and Estimated Actual Value of Taxable Property 6 III – 8
Property Tax Rate – Direct and Overlapping Governments 7 III – 9
Principal Property Taxpayers 8 III – 10
Property Tax Levies and Collections 9 III – 11
Debt Capacity:
Ratios of Outstanding Debt by Type 10 III – 12
Ratio of Net General Obligation Debt to Assessed Value and
Net Obligation Debt Per Capita 11 III – 13
Computation of Direct and Overlapping Debt 12 III – 14
Legal Debt Margin Information 13 III – 15
Demographic and Economic Information:
Demographic and Economic Statistics 14 III – 16
Principal Employers 15 III – 17
Operating Information:
Full-time Equivalent City Government Employees by Function 16 III – 18
Operating Indicators by Function 17 III – 19
Capital Asset Statistics by Function 18 III – 20
INTRODUCTORY SECTION
I - 2
The City is required to undergo an annual single audit in conformity with the
provisions of the Single Audit Act of 1984 and the U.S. Office of Management and
Budget’s Circular A-133, Audits of States, Local Government and Non-Profit
Organizations. Information related to this single audit, including a schedule of
expenditures of federal awards, findings, questioned costs, recommendations, and
the independent auditor’s reports on the internal control structure and compliance
with applicable laws and regulations, are included in a separately issued single audit
report.
Governmental Accounting Standards Board (GASB) requires that management
provide a narrative introduction, overview, and analysis to accompany the basic
financial statements in the form of Management’s Discussion and Analysis (MD&A).
This letter of transmittal is designed to complement MD&A and should be read in
conjunction with it. The City’s MD&A can be found immediately following the
independent auditor’s report.
Profile of the Government
The City of Bangor is situated in eastern Maine, is the Penobscot County seat, and is
the third most populous of Maine’s 22 cities. The City occupies approximately 35
square miles on the western shore of the Penobscot River. Bangor was first settled
in 1656, incorporated as a town on February 25, 1791 and as a city on February 12,
1834. Bangor is the major trade, distribution, service, and commercial center for the
central, eastern, and northern portions of the State.
The City operates under a Charter adopted in 1931 that provides for a Council-
Manager form of government. The City Council is composed of nine members who
are elected at large for three-year staggered terms. The Charter grants to the
Council all powers to enact, amend, or repeal rules, ordinances, and resolutions
relating to the City’s property, affairs, and government; to preserve the public
peace, health, and safety; to establish personnel policies; to give effect to any vote
of the City; and to authorize the issuance of debt. The Council adopts an annual
budget and provides for an annual audit. The City Manager is the chief
administrative officer of the City and is appointed by the Council, as are the
Assessor, Solicitor, and Clerk.
The City’s schools are governed by a seven-member School Committee. Its
members are elected at large to staggered three-year terms. By Charter, the School
Committee has all the powers and performs all the duties related to the care and
management of the public schools of the City. The Committee annually furnishes to
the City Council an estimate of sums required for school purposes for the ensuing
municipal year. The City Council makes a single gross appropriation for this
purpose. Under a recent change in state law, the Council approved school
appropriation must be ratified by the voters of Bangor at a referendum held in June
I - 3
prior to the start of the City’s fiscal year. Once approved, the expenditure of this
appropriation is under the direction and control of the School Committee. The
School Committee employs the Superintendent of Schools as its chief operating
officer.
The City provides a full range of municipal services including police and fire,
highways and sanitation, health and welfare, parks and recreation, education, public
transportation, planning, business and economic development, code enforcement,
and general administrative services. Bangor International Airport, sanitary sewer
services, the Bass Park Complex, parking, golf course, economic development, and a
transitional housing complex are accounted for in the City’s enterprise funds.
The City’s budgeting process is structured around its fiscal year, which begins on
July 1st and ends on the following June 30th. The City annually adopts budgets for
its general fund and seven enterprise funds. The City Charter requires that the City
Manager submit a recommended budget to the Council by the second Monday in
April. The budget, which must be in balance, contains estimates of all non-tax
revenues and receipts expected to be received during the next fiscal year, the
expenditures necessary to support City operations, debt service requirements, and
the tax levy required to achieve balance between revenues and expenditures. The
Council may modify recommended expenditures and the recommended tax levy. If
the Council fails to adopt a budget by July 1st, the City Manager’s proposed budget
automatically becomes that fiscal year’s budget. In either case, an appropriate
property tax levy is established and filed with the City Assessor, who then sets the
necessary property tax rate.
The annual budget serves as the foundation for the City’s financial planning and
control and is prepared by fund, function, and department. The City Manager may
transfer resources within a department; however, transfers between departments
require Council action.
Special revenue funds do not have adopted budgets but have program budgets.
Budgetary controls are maintained on other governmental funds through formal
authorizations by the City Council and through grant agreements. All budgets are
legally adopted by the City Council through the passage of an appropriation resolve.
I - 4
Factors Affecting Financial Condition
Local economy. The City is the economic, educational, recreational, distribution,
and health care center for the central, eastern, and northern Maine regions. Bangor
also serves as northern New England's economic link to the Canadian Maritimes and
Eastern Quebec. The City is a major center for the communications, banking,
commercial, industrial, healthcare, and governmental sectors of the State.
Bangor has a stable and varied economic base. Major employers include a
diversified mix of health care, educational, professional, retail, manufacturing, and
governmental entities. Bangor’s 2010 unemployment rate of 7.4% continues to be
on par with or below both county and state rates of 8.7% and 8.4%, respectively.
Bangor is the second largest retail market in Maine after Portland. The Bangor Mall,
Airport Mall, Broadway commercial center, Union Street commercial corridor, and
the Bangor Center Development District (downtown) have long established Bangor
as the hub of the six-county eastern Maine retail market. Bangor's retail sector
serves an extensive geographic area ranging from eastern Maine to the Canadian
Maritimes, with a population exceeding 3.1 million. With less than three percent of
the State’s population, Bangor’s share of the State’s retail sales is proportionally
higher. In 2010, Bangor’s share of the State’s retail sales was 9%, and its share of
County sales was 76%.
Further evidence of continuing sustained growth is the change in the City’s assessed
value of real and personal property. The annual increase in assessed value is a
combination of three factors: 1) market adjustments to existing property, 2) new
construction/additions, and 3) personal property depreciation. Over the last ten
years, the average annual increase in assessed value is 6.2%. Tax base growth, the
City’s focus on controlling budgetary growth, and ramped up state funding for
education resulted in a 19% reduction in the City’s tax rate from 2002 to 2011.
The City is committed to preserving its viable economic base while creating new
opportunities for future economic growth. To achieve these objectives, the City is
proactive in supporting economic activity through planned capital improvements,
innovative financing, and aggressive marketing.
Long-term financial planning and major initiatives. The City’s capital
improvement plan is an integral part of the annual budget process. A complete list
of near term improvements is submitted as part of the City Manager’s budget
submission for all City functions. The plan includes projects anticipated within the
coming one to two year period with an indication of how the City anticipates funding
the improvements. Certain improvements are longer term in nature and are
updated and reviewed via the City’s Committee structure on an as needed basis.
I - 5
Progress continues in the redevelopment of almost a mile of prime Penobscot River
frontage extending from the City's downtown area to the Bass Park Complex. A
majority of the required infrastructure has been installed, for which the City has
been successful in obtaining partial funding from both State and Federal agencies.
In addition, after many years of investigation and negotiations with several federal
agencies, the City has completed the major portion of the coal tar remediation. The
City continues to work with State and Federal agencies to ensure and monitor the
long term impacts/success of the project.
Over the years, the City has invested significant resources and effort in improving
our local environment and protecting our natural resources. Over the past year, the
major emphasis has been on storm water management issues. Storm water quality
requirements and related regulations affect various water bodies within our
corporate limits and a number of watershed management plans are in various
stages of development and implementation throughout the City. The City has taken
a proactive approach to addressing storm water issues and is investigating the need
to implement a storm water utility in order to fund the costs associated with storm
water management.
Under a development agreement with Bangor Historic Track, a wholly owned
subsidiary of Penn National Gaming, the City receives a percentage of gross slot
revenue as well as land lease payments and property taxes on the new development
associated with Maine’s only gaming facility. In October 2005, the City established a
special revenue fund to account for its share of gross slot revenue. In addition, the
Council Order establishing this fund specifies that its primary use will be to construct
a new arena in Bangor to replace the Bangor Auditorium, which opened in Bass Park
in 1954. Based on a Market Sizing and Feasibility Study related to the construction
of a new arena and meeting space, and the results of the schematic
design/preconstruction phase of this work, the City entered into a final design
contract for construction of the new facilities as well as a construction manager at
risk guaranteed maximum price construction contract. Ground was broken in
August 2011 on the $58,594,619 project. Since year end, the City Council has also
selected Global Spectrum to be the private operator of the new facility.
Relevant Financial Policies. City policy prescribes uses for unassigned fund
balances. In general, unassigned fund balance is not to be used to fund any portion
of the on-going and routine year to year operating expenditures of the City. It is to be used primarily to ensure adequate fund balances, to respond to unforeseen
emergencies, and to provide overall financial stability.
I - 6
By Charter, the City is required to maintain a balance between 5% and 10%, and
the Council has determined that a reasonable target is 8.33%. Unassigned fund
balance in the general fund as of June 30, 2011 was 9.11% of expenditures, net of
debt service.
Awards and Acknowledgements. The Government Finance Officers Association
(GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting
to the City of Bangor for its comprehensive annual financial report for the fiscal year
ended June 30, 2010 for the fifteenth consecutive year. In order to be awarded a
Certificate of Achievement, a government must publish an easily readable and
efficiently organized comprehensive annual financial report. This report must satisfy
both generally accepted accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe that
our current comprehensive annual financial report continues to meet the Certificate
of Achievement Program’s requirements, and we are submitting it to the GFOA for
consideration for another certificate.
The preparation of this document would not have been possible without the hard
work of all of the City’s employees. Each one contributes on a daily basis, simply by
carrying out the responsibilities of their positions.
Our sincerest thanks are once again extended to our Citizens and the Bangor City
Council for their continued support for our efforts to further develop the City’s
financial management and reporting capabilities. We are confident that we have
once again met their expectations.
Respectfully submitted,
Debbie Cyr
Finance Director
CITYMANAGER
CITIZENSOFBANGOR
CITIZENCOMMISSIONS CITIZENBOARDS
CITYCLERK
CITYCOUNCIL
ASSESSINGCITYSOLICITOR
VOTER
REGISTRATION
ANIMALCONTROL
ELECTIONS
CITY OF BANGOR ORGANIZATIONAL CHART Revised (05/11)
FINANCE
AUDITING
TREASURY
RISK &ENVIRONMENTALMANAGEMENT
INFORMATIONSERVICES
PURCHASING
PUBLIC WORKS
SEWERMAINTENANCE
WASTEWATERTREATMENT
HARBOR
ENGINEERING
PLANNING
CODEENFORCEMENT
INFRASTRUCTURE AND DEVEL-
OPMENT SUPPORT
POLICE
DETECTIVE
PATROL
ADMINISTRATION
SERVICES
COMMUNITY &ECONOMIC DEV.
COMMUNITYDEVELOPMENT
ECONOMICDEVELOPMENT
DOWNTOWNPROGRAMS
PARKINGMANAGEMENT
BANGORINTERNATIONALAIRPORT
CIVIC CEN-TER
AUDITORIUM
STATEFAIR
BASS PARK
ADMINISTRATION
FIREPREVENTIONBUREAU
FIREFIGHTING
FIRE
LABORRELATIONS
ADMINISTRATIVESERVICES
HUMANRESOURCES
FLEETMAINTENANCE
BATCOMMUNITYCONNECTOR
CENTRALSERVICES
HEALTH ANDWELFARE
GENERALRELIEF
DENTALCLINIC
NURSINGSERVICES
GRANTPROGRAMS
GOVERNMENT
OPERATIONS
PARKSMAINTENANCE
RECREATION
PARKS ANDRECREATION
GOLFCOURSE
PARKWOODS
RECORDS
I - 9
City of Bangor, Maine
Elected Officials and Principal Administrative Officers June 30, 2011
City Council
Susan M. Hawes, Mayor
Patricia A. Blanchette Richard B. Bronson
Nelson E. Durgin Geoffrey M. Gratwick
Charles R. Longo, Jr. David Nealley
Gerry G.M. Palmer Cary M. Weston
City Staff
Catherine M. Conlow, City Manager
Benjamin F. Birch, City Assessor
Patti Dubois, City Clerk
Norman Heitmann, City Solicitor
School Committee
Phyllis Guerette, Chair
Warren Caruso Kate Dickerson
Nichi Farnham Beth Grant
Christine Szal, Vice Chair Jay Ye
School Staff
Betsy Webb, Superintendent of Schools
FINANCIAL SECTION
II1
Certified Public Accountants and Business Consultants
Report of Independent Auditors
City Council
City of Bangor,Maine:
We have audited the accompanying financial statements of the governmental activities,the business
type activities,each major fund,and the aggregate remaining fund information of the City of Bangor,
Maine,as of and for the year ended June 30,2011,which collectively comprise the City’s basic financial
statements as listed in the table of contents.These financial statements are the responsibility of the
City of Bangor,Maine's management.Our responsibility is to express opinions on these financial
statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States
of America and the standards applicable to financial audits contained in Government Auditing Standards
issued by the Comptroller General of the United States.Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial statements are free of
material misstatement.An audit includes examining,on a test basis,evidence supporting the amounts
and disclosures in the financial statements.An audit also includes assessing the accounting principles
used and significant estimates made by management,as well as evaluating the overall financial
statement presentation.We believe that our audit provides a reasonable basis for our opinions.
In our opinion,the financial statements referred to above present fairly,in all material respects,the
respective financial position of the governmental activities,the businesstype activities,each major
fund,and the aggregate remaining fund information of the City of Bangor,Maine,as of June 30,2011,
and the respective changes in financial position,and where applicable,cash flows thereof and the
budgetary comparison for the General Fund for the year then ended in conformity with accounting
principles generally accepted in the United States of America.
In accordance with Government Auditing Standards,we have also issued a report dated December 19,
2011,on our consideration of the City of Bangor,Maine's internal control over financial reporting and
on our tests of its compliance with certain provisions of laws,regulations,contracts and grant
agreements and other matters.The purpose of that report is to describe the scope of our testing of
internal control over financial reporting and compliance and the results of that testing,and not to
provide an opinion on internal control over financial reporting or on compliance.That report is an
integral part of an audit performed in accordance with Government Auditing Standards and should be
considered in assessing the results of our audit.
Accounting principles generally accepted in the United States of America require that the Management’s
Discussion and Analysis and Schedule of Funding Progress,as listed in the table of contents,be
presented to supplement the basic financial statements.Such information,although not a part of the
basic financial statements,is required by the Governmental Accounting Standards Board,who considers
it to be an essential part of financial reporting for placing the basic financial statements in an
appropriate operational,economic,or historical context.
City Council
City of Bangor,Maine
We have applied certain limited procedures to the required supplementary information in accordance
with auditing standards generally accepted in the United States of America,which consisted of inquiries
of management about the methods of preparing the information and comparing the information for
consistency with management’s responses to our inquiries,the basic financial statements,and other
knowledge we obtained during our audit of the basic financial statements.We do not express an
opinion or provide any assurance on the information because the limited procedures do not provide us
with sufficient evidence to express an opinion or provide any assurance.
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City of Bangor,Maine’s financial statements as a whole.The introductory
section,combining and individual nonmajor fund financial statements,schedules,and statistical section
are presented for purposes of additional analysis and are not a required part of the basic financial
statements.The combining and individual nonmajor fund financial statements and schedules are the
responsibility of management and were derived from and relate directly to the underlying accounting
and other records used to prepare the financial statements.The information has been subjected to the
auditing procedures applied in the audit of the financial statements and certain additional procedures,
including comparing and reconciling such information directly to the underlying accounting and other
records used to prepare the financial statements or to the financial statements themselves,and other
additional procedures in accordance with auditing standards generally accepted in the United States of
America.In our opinion,the information is fairly stated in all material respects in relation to the
financial statements as a whole.The introductory and statistical sections have not been subjected to
the auditing procedures applied in the audit of the basic financial statements and,accordingly,we do
not express an opinion or provide any assurance on them.
December 19,2011
South Portland,Maine
II2
II - 3
MANAGEMENT’S DISCUSSION AND ANALYSIS
Management of the City of Bangor offers this narrative overview and analysis of the financial
activities of the City for the fiscal year ended June 30, 2011. In addition to comparative
information from the government-wide statements, comparative data is presented on key
information from the fund financial statements. We encourage readers to consider the
information presented here in conjunction with additional information that is furnished in our letter of transmittal, which can be found on pages I-1 to I-6 of this report.
Financial Highlights
The assets of the City of Bangor exceeded its liabilities at the close of the most recent fiscal
year by $212.4 million (net assets).
At the close of fiscal year 2011, the City of Bangor’s governmental funds reported combined
ending fund balances of $27.5 million, a decrease of $526 thousand over the prior year balance, as restated. Approximately 73% of the total amount, or $20 million, is either
committed, assigned or unassigned and is available for spending at the City Council’s
discretion.
The City of Bangor has a fund balance policy. The City strives to maintain a General Fund
unassigned fund balance of 5% to 10% of current expenditures less debt service. At the
end of the current fiscal year, unassigned fund balance for the General Fund was $8 million,
or 9.11% of the general fund expenditure base. The annual calculation is included within the financial statements as Schedule F-2.
The total liabilities of the City’s governmental funds increased by $830 thousand (5.7%),
primarily due to an increase in year-end accrued payroll, and enterprise fund liabilities
decreased by $2.3 million (5.4%) and is primarily due to principal payments exceeding net debt issued. Accounts payable can vary drastically from year to year depending upon the
timing of invoices received and/or the projects being undertaken.
As required, the City updated its actuarial valuation report for its other post employment
employee benefits (OPEB). City retirees are allowed to participate in the City’s group health
insurance plan but are required to contribute 100% of the premium. There were significant
changes in the actuarial assumptions (rate of participation) which resulted in a $6.7 million
reduction in the City’s overall unfunded actuarial accrued liability.
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the City of Bangor’s basic
financial statements. These statements consist of three components: government-wide
financial statements, fund financial statements, and notes to the financial statements. This
report also contains other supplementary information in addition to the basic financial
statements themselves.
Government-wide financial statements. The government-wide financial statements
present the financial picture of the City from the point of view of economic resources
measurement and using the accrual basis of accounting, which is similar to that used by private-sector companies. These statements present governmental activities and business-type
activities separately.
II - 4
The statement of net assets includes all of the City’s assets and liabilities, with the difference
between the two reported as net assets. Over time, increases or decreases in net assets may
serve as a useful indicator of whether the financial position of the City is improving or
deteriorating.
The statement of activities presents information showing how the City’s net assets changed during the most recent fiscal year. All changes in net assets are reported as soon as the
underlying event giving rise to the change occurs, regardless of the timing of related cash
flows. Thus, revenues and expenses are reported in this statement for some items that are
accrued but not yet paid or collected but will result in cash flows in future fiscal periods (e.g.,
uncollected taxes and earned but unused employee vacation leaves).
These statements are divided into two categories: governmental activities and business-type
activities.
Governmental activities – Most of the City’s basic services are included here, such as the
general government, public safety, public works, health and welfare, education, and parks
and recreation. These activities are principally supported by taxes and intergovernmental revenues.
Business-type activities – Currently, the City operates the following business-type activities:
Bangor International Airport, Sewer Utility, the Bass Park Complex, Parking, Golf Course, Economic Development, and the Park Woods Complex.
The government-wide financial statements can be found on pages II-17 to II-18 of this report.
Fund financial statements. A fund is a grouping of related accounts that is used to maintain
control over resources that have been segregated for specific activities or objectives. The City
of Bangor, like other state and local governments, uses fund accounting to ensure and
demonstrate compliance with finance-related legal requirements. All of the funds of the City
can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds.
Governmental funds are used to account for mostly the same functions reported as
governmental activities in the government-wide financial statements. However, unlike the
government-wide financial statements, governmental fund financial statements are reported
using an accounting method called modified accrual accounting that measures cash and all
other financial assets that can readily be converted to cash. Both the governmental fund
balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate a comparison between
governmental funds and governmental activities.
The City of Bangor maintains ten individual governmental funds. Information is presented
separately in the governmental fund balance sheet and in the governmental fund statement
of revenues, expenditures, and changes in fund balances for the General Fund, Community
Development Block Grant, Arena fund, and Capital Projects Fund, all of which are
considered to be major funds. Data from the other six governmental funds are combined into a single aggregated presentation. Individual fund data for each of these non-major
governmental funds is provided in the form of combining statements (Schedule B)
elsewhere in this report.
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2011 2010 2011 2010 2011 2010
Current & other assets 42,682,947 41,792,130 25,924,589 25,356,561 68,607,536 67,148,691
Capital assets, net 76,498,975 73,228,649 181,735,689 186,974,165 258,234,664 260,202,814
Total assets 119,181,922 115,020,779 207,660,278 212,330,726 326,842,200 327,351,505
Long-term debt outstanding 64,359,966 67,109,938 34,125,664 37,063,454 98,485,630 104,173,392
Other liabilities 13,363,673 12,415,061 2,640,734 2,116,512 16,004,407 14,531,573
Total liabilities 77,723,639 79,524,999 36,766,398 39,179,966 114,490,037 118,704,965
Net assets:
Capital assets, net of related debt*40,176,260 36,149,087 155,344,528 158,031,245 195,520,788 194,180,332
Restricted 1,019,806 1,120,413 - - 1,019,806 1,120,413
Unrestricted*262,217 (1,455,656) 15,549,352 15,119,515 15,811,569 13,663,859
Total net assets 41,458,283 35,813,844 170,893,880 173,150,760 212,352,163 208,964,604
* Governmental activities capital assets, net of related debt and unrestricted net assets have been restated to conform with the 2011 presentation.
Governmental
Activities
Business-type
Activities Total
The City of Bangor adopts an annual budget for its General Fund. A budgetary comparison
statement has been provided for the general fund to demonstrate compliance with this
budget (Schedule A-2).
Proprietary funds are used to account for essentially the same functions reported as
business-type activities in the government-wide financial statements. Enterprise funds are the only type of proprietary funds maintained by the City. The proprietary fund statements
provide the same type of information as the government-wide statements, only in more
detail.
The City maintains seven individual proprietary funds, of which the Sewer Utility, Airport and
Economic Development Funds are considered to be major. Data from four other proprietary
funds is combined into a single aggregated presentation. Individual fund data for each of
these non-major proprietary funds is provided in the form of combining statements
(Schedule C) elsewhere in this report. The City of Bangor adopts annual budgets for all of
its proprietary funds. Budgetary comparison statements have been provided for each
proprietary fund to demonstrate compliance with budgets (Schedule C4 – C10).
Fiduciary funds are used to account for resources held for the benefit of parties outside the
City. Fiduciary funds are not reflected in the government-wide financial statements because
the resources of those funds are not available to support the City’s own programs. The accounting used for fiduciary funds is much like that used for proprietary funds. The
Fiduciary Statement of Net Assets is included in this report as Exhibit 10.
Notes to the financial statements. The notes provide additional information that is
essential to a full understanding of the data provided in the government-wide and fund financial
statements. The notes to the financial statements can be found on pages II-29 through II-55 of
this report.
Government-wide Financial Analysis
The following is a condensed version of the Statement of Net Assets.
II - 6
By far the largest portion of the City’s net assets reflects its investment in capital assets (i.e.,
land, buildings, machinery and equipment) less any related outstanding debt used to acquire
those assets. The City uses these capital assets to provide services to citizens. Consequently,
these assets are not available for future spending. Although the City’s investment in its capital
assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources since the capital assets themselves cannot be
used to satisfy these liabilities. Restricted net assets are those resources that are subject to
external restrictions on how they may be used; such as donor, legal or granting agency
restrictions. While the remaining balance of unrestricted net assets has a balance of $15.8
million, the governmental activity portion is significantly lower with a balance of $262 thousand.
This is primarily due to $25.4 million in outstanding pension obligation bonds. Regardless, the
City is able to report positive balances in all categories of net assets for the governmental and business-type activities individually, as well as in total.
Governmental-type net assets increased $5.6 million. The major components associated with
the increase in governmental-type net assets is the receipt of $2.3 million of arena fund revenues that result from the racino operation, a $1.8 million capital grant for public
transportation, and the receipt of non-tax revenues such as revenue sharing, excise tax and
charges for services exceeding initial estimates.
Business-type net assets decreased by $2.3 million. The reduction in net assets was largely
driven by the fact user fees cannot absorb annual depreciation expense, due to the significant
cost of infrastructure, specifically within the Airport Fund. Airport infrastructure investments are
typically funded via the federal/state Airport Improvement Plan, which provides 97.5% of the
funding for projects or the Passenger Facility Charges, which is a federally regulated program
whereby per passenger fees are collected from the airlines.
II - 7
2011 2010 2011 2010 2011 2010
Revenues
Program Revenues
Charges for services 19,076,163 17,748,299 24,357,732 25,027,171 43,433,895 42,775,470
Operating grants & contributions 35,604,940 35,683,710 - - 35,604,940 35,683,710
Capital grants & contributions 4,935,614 6,578,917 3,717,755 8,684,860 8,653,369 15,263,777
General Revenues - -
Property and other taxes 53,072,633 53,343,324 - - 53,072,633 53,343,324
Grants and contributions not - -
restricted to specific programs 4,859,811 4,999,567 - - 4,859,811 4,999,567
Other 657,705 809,144 752,891 1,035,753 1,410,596 1,844,897
Total Revenues 118,206,866 119,162,961 28,828,378 34,747,784 147,035,244 153,910,745
Expenses
General government 9,223,718 8,279,943 - - 9,223,718 8,279,943
Public safety 17,018,427 16,898,374 - - 17,018,427 16,898,374
Health, community and recreation 9,523,225 9,331,784 - - 9,523,225 9,331,784
Public buildings and services 12,413,601 16,380,337 - - 12,413,601 16,380,337
Other agencies 4,479,888 4,658,904 - - 4,479,888 4,658,904
Education 50,986,350 52,763,860 - - 50,986,350 52,763,860
Arena development 61,334 39,075 - - 61,334 39,075
Community development 1,542,975 1,506,038 - - 1,542,975 1,506,038
Waterfront 1,439,065 79,911 - - 1,439,065 79,911
Public transportation 1,701,112 2,792,904 - - 1,701,112 2,792,904
Interest on debt 2,151,172 2,555,839 - - 2,151,172 2,555,839
Economic development (tif)1,383,662 1,630,081 - - 1,383,662 1,630,081
Sewer Utility - - 6,202,202 6,253,436 6,202,202 6,253,436
Airport - - 20,458,552 20,532,553 20,458,552 20,532,553
Economic Development - - 618,980 634,764 618,980 634,764
Park Woods - - 496,478 529,610 496,478 529,610
Parking - 1,206,989 1,402,922 1,206,989 1,402,922
Bass Park - - 2,075,644 1,923,073 2,075,644 1,923,073
Municipal Golf Course - - 664,311 733,380 664,311 733,380
Total Expenses 111,924,529 116,917,050 31,723,156 32,009,738 143,647,685 148,926,788
Excess (deficiency) before transfers 6,282,337 2,245,911 (2,894,778) 2,738,046 3,387,559 4,983,957
Transfers (637,898) 761,103 637,898 (761,103) - -
Change in net assets 5,644,439 3,007,014 (2,256,880) 1,976,943 3,387,559 4,983,957
TotalActivities
Business-type
Activities
Governmental
Changes in Net Assets
The following is a condensed version of the Statement of Activities.
II - 8
Governmental Activities
The cost of all governmental activities was $111.9 million. As shown on the Statement of
Activities, the total amount financed by the property tax was $48 million, or 42.9% of expenses.
Those who directly benefit from an activity provided $19.1 million in payments. Other governments and organizations subsidized certain activities with operating grants and
contributions in the amount of $35.6 million. Capital grants and contributions accounted for
$4.9 million. The City also received $10.6 million in other general revenues such as state
revenue sharing, motor vehicle and boat excise taxes, homestead exemptions, and interest
earnings.
Total governmental activities expenses decreased $5 million over the prior year. The results for
FY 2010 include nearly $5.2 million of expenses related to activities funded by the American
Recovery Reinvestment Act and other new federal grants funds such as; supplementing
education based equipment, tuition, services and supplies, a neighborhood stabilization
program, nonpoint source pollution improvements, public safety training and equipment,
sidewalk improvements and four new police officers. During FY 2011, City employees did not
receive a cost of living adjustment and due to lower than anticipated utilization coupled with
employee/insurer driven wellness initiatives there were no increase in health insurance costs
either.
0
10
20
30
40
50
60
(in millions)General GovernmentPublic SafetyPublic ServicesHealth, Community & RecreationOther AgenciesEducationArena DevComm DevelopWaterfrontPublic TransportationEcon DevelopInterest on DebtExpenses and Program Revenues - Governmental Activities
Expenses
Revenues
II - 9
Total governmental activities’ revenues decreased $956 thousand, or .01%. The largest single source of revenue continues to be the property tax, which decreased $271 thousand. Capital
grants and contributions decreased $1.6 million due to receipt of a $1.6 million waterfront grant
received in FY 2011. In total, charges for services increased $1.3 million, of that amount $884
thousand was due to increased ambulance service billings.
Business-type Activities
Total business-type activities expenses were relatively unchanged compared to prior year levels,
with a decrease 1%, or $287 thousand. For FY 2011, the City employees working in business-
type activities did not receive a cost of living adjustment and due to lower than anticipated
utilization coupled with employee/insurer driven wellness initiatives there were no increase in
health insurance costs.
Revenues by Source - Governmental Activities
30%4%
41%
4%4%1%16%
Charges for Services
Operating Grants &
ContributionsCapital Grants & Contributions
Property Taxes
Other General
Unrestricted Grants &ContributionsOther Unrestricted
II - 10
In total, business-type activities revenue decreased significantly $5.9 million or 17%, $5 million
of which was attributable to a reduction in capital contributions. FY 2010 included capital
contributions for the construction of a parking deck within the Parking Fund and for leasehold
improvements at the City’s harness racing track at the Bass Park facility.
Revenues by Source - Business-type Activities
Unrestricted
Investment Earnings
3%
Capital Grants and
Contributions
13%
Charges for Services
84%
Charges for Services
Capital Grants and
Contributions
Unrestricted Investment
Earnings
0
5
10
15
20
25
(in millions)Sewer UtilityAirportPark WoodsParkingBass ParkGolf CourseEcon DevelopExpenses and Program Revenues - Business-type Activities
Expenses
Revenues
II - 11
Financial Analysis of the Government’s Funds
Governmental funds. The focus of the City’s governmental funds reporting is to provide
information on near-term inflows, outflows, and balances of spendable resources. Fund
balance is the measure of a governmental fund’s spendable resources. Governmental funds
report fund balances in one of five possible classifications. The nonspendable portion of fund balance cannot be spent. Restricted fund balances are subject to externally enforceable legal
restrictions. Committed fund balances are subject to limitations the City Council has imposed,
that are binding unless removed in the same manner. Assigned fund balances reflect the
intended use of resources. Unassigned fund balances are resources which have not been classified in any other category. Only the General Fund can report a positive unassigned fund
balance amount.
At fiscal year end, the City of Bangor’s governmental funds reported combined ending fund
balances of $27.5 million, a decrease of $526 thousand from the prior year balance, as
restated, of $28.1 million. Of the ending balance of $27.5 million, approximately 73% of this
total ($20 million) is either committed, assigned or unassigned and is available for spending by
formal action of the City Council. The remainder is nonspendable, indicating that it is in the
form of nonspendable assets such as inventory, prepaid expenses and allowance for advances
made to other funds. As a result of the implementation of Governmental Accounting Standards
Board (GASB) Statement 54, Fund Balance Reporting and Governmental Fund Type Definitions, the City had to reclassify the value of its inventory, in the amount of $910 thousand, from its
unassigned fund balance to its nonspendable fund balance account.
The General Fund is the chief operating fund of the City and is comprised of two major
functions, education and municipal services. At the end of the fiscal year, the General Fund’s
total fund balance was $17 million, a $1.1 million increase from the prior year’s balance of $15.9 million. Due to the reclassification of fund balances required by GASB 54, changes by
fund balance category are difficult to discern. In general, the overall increase in fund balance is
related to the receipt of certain revenues in excess of anticipated amounts, specifically revenue
sharing and excise taxes. School Department restricted fund balances increased by $200
thousand, and the balance of the total $1.1 million increase is related to municipal operations.
As noted above, and in compliance with the City’s fund balance policy, adopted by the City
Council in June 2011, committed, assigned and unassigned fund balances are available for spending to support the operations provided the City Council appropriates the amounts in
accordance with the provisions of the City Charter.
The Community Development Block Grant Fund accounts for the annual entitlement grant funds received under the Housing and Community Development Act of 1974. Total expenditures for
FY 2011 were relatively flat in comparison to the prior year, which was as expected based on
the annual grant award of approximately $900 thousand annually.
The Arena Fund accounts for the percentage of slot revenues received by the City from the
operation of the Racino. The fund was established to replace the current Bangor Auditorium
and Civic Center. The fund continues to outperform initial projections. During the year, the City
Council entered into design and construction contracts to replace this facility at an estimated
total cost of $65 million.
II - 12
The Capital projects fund varies significantly from year to year depending upon City Council
priorities and available funding opportunities. Total expenditures decreased $20.2 million over
the prior year. FY 2010, included significant one-time expenditures of $10.4 million to refund
capital project related debt and $7.6 million to fund the Penobscot River coal tar remediation
project. Proprietary funds. Information on the City of Bangor’s proprietary funds is similar to that
found in the government-wide financial statements, but in more detail. The net assets of the
seven enterprise funds decreased $2.3 million to a total of $171 million. Both operating
revenues and expenses remained relatively flat. The decrease in net assets is related to
depreciation expense exceeding capital acquisitions.
General Fund Budgetary Highlights
For budgetary financial statement purposes, all balances carried from the prior year are added
to the subsequent year’s total appropriation. This resulted in an overall budgetary increase of
$4.1 million. There were minimal additional amendments to the originally adopted budget. The
City’s commitment to budgetary integrity continues, with actual revenues exceeding budget estimates by 1.6%, or $1.5 million, while municipal expenditures were under budget by 5%, or
$4.9 million. Education expenditures were under budget by $5.9 million or 11%, and general
assistance expenditures were over budget by $980 thousand. General assistance is a state
mandated program, for which the each municipality is reimbursed. By statute, education
balances must be segregated from municipal balances.
Capital Asset and Debt Administration
Capital assets. As of June 30, 2011, the City of Bangor’s investment in capital assets for its
governmental and business-type activities amounted to $258.2 million (net of accumulated
depreciation), a decrease of $3.5 million over the prior year. This investment includes land,
buildings, machinery and equipment, roads, runways, and sewer lines. The total decrease in
the City’s investment in capital assets for the current fiscal year is due to a $1.7 million
reduction in beginning business-type net assets (see Note H on Page II-53 for additional
information), and depreciation expense exceeding new investments by $1.8 million. Governmental activities invested $7.1 million, and business-type activities invested $4.9 million.
Major capital asset events during the current fiscal year included the following;
The City, as operator of the area public transit system, received five new busses this year
valued at $1.9 million that replaced older more costly vehicles. Over 96% of the funding for
these vehicles was provided via Federal and State grant funds.
The City executed contracts for design and construction manager at risk with a guaranteed
maximum price for the construction of a new arena/meeting complex. During the year, the
City invested $3.1 million in this project, most which were design related.
The City continues to garner Federal, State and local funding (provided via the Downtown Development District TIF) for investment in its waterfront. This year the City invested an
additional $730 thousand on our waterfront. The project includes additional utilities, park
and open space, as well as surface parking.
The Sewer Utility Fund invested $1 million to replace its 1968 heating and ventilation
system. The project included changing the heating system from low pressure steam to hot
II - 13
water, installation of dual fuel boilers and a central control system, as well as bringing the
system into compliance with current building and life safety codes.
The Airport Fund invested $3.4 million in operational assets at Bangor International Airport
including apron improvements, general building improvements, as well as the replacement
of hangar doors. Nearly $2.7 million of this investment was funded through the Federal Department of Transportation’s Airport Improvement Plan, which provides 95% federal and
2.5% state funding for approved projects.
Capital Assets (net of depreciation)
Governmental Business-type
Activities Activities
Land and improvements 10,216,932 5,424,885
Buildings and improvements 40,717,852 13,855,861
Machinery and equipment 2,805,741 1,579,160
Vehicles 7,189,468 -
Infrastructure 11,030,667 46,606,063
Parking structures - 3,421,549
Aircraft operational assets - 101,480,744
Construction in process 4,538,315 9,367,427
Total 76,498,975 181,735,689
Additional information on the City’s capital assets can be found in Note C, Detailed Notes on all
funds, of this report.
Debt Administration
At fiscal year end, the City had a total outstanding bonded debt of $90.4 million, a decrease of $6.2 million during the year.
The City’s general obligation debt obtained a “AA” rating from Standard & Poor’s and a “A1”
rating from Moody’s.
Bonded Debt Outstanding (in millions)
$32.0
$58.4
Governmental Activities
Business-type Activities
II - 14
State statutes limit the amount of general obligation debt a governmental entity may issue to
15% of its total State assessed valuation. The current debt limit for the City is $370 million, an
amount which is significantly in excess of existing general obligation debt.
Additional information on the City’s long-term debt can be found in Note I on pages II-42 to II-
45 of this report.
American Recovery and Reinvestment Act (ARRA) of 2009
Through a competitive grant application process, the City successfully obtained the maximum award of $3 million from the Environmental Protection Agency Clean Water State Revolving
Loan Fund (the award is in the form of a 0% loan with 50.6% of the principal forgiven). The
funds are being used for a variety of non point source stormwater improvements on both
publicly and privately owned property. As of December 2011, 100% of the funds have been
expended and the City is within the expenditure guidelines established by the EPA.
In 2011, the School Department was awarded $1.7 million in support of two programmatic
areas: stabilization funds ($1.2 million), and IDEA ($500 thousand). All of these funds were
expended during FY2011. Budget stabilization funding was used to increase the number of
laptops in the classroom and for necessary capital improvements. IDEA funds were used to
supplement the general budget for such items as tuition, contracted services and supplies. In
FY 2011, the School Department was awarded an additional $750 thousand in federal jobs
funding that was carried forward for use in FY 2012.
The City was awarded $900 thousand in Department of Justice funding, the largest portion
($700 thousand) of which is funding the cost of four additional police officers for a three year
period.
As a Community Development Block Grant (CDBG) entitlement community, the City of Bangor
was awarded an additional $300 thousand in funding. The funds were used to supplement
$200 thousand in Energy Efficiency Block Grant and local funds to convert downtown streetlights to LED fixtures and to fund sidewalk improvement in low to moderate income
neighborhoods. As of December 2011, the LED streetlight conversion is complete and the
majority of the sidewalk funding has been expended.
Economic Factors and Next Year’s Budget and Rates
The unemployment rate for the City of Bangor for calendar year 2010 was 7.4%, which
continues to be on par with or below both the county and State rates of 8.7% and
8.4%,respectively.
While Bangor represents less than 3% of the state’s population, the City’s share of retail
sales remains in excess of 9% of total statewide sales and 76% of Penobscot County sales.
Bangor has experienced a slowing in the rate of appreciation of existing homes. We project
that existing home values will remain flat or increase slightly in the coming year.
Value of commercial properties has stabilized after realizing significant downward
adjustments made in FY 2011.
Bangor businesses continue to reinvest in personal property. Business equipment tax exempt investments are not subject to local taxation however, the State reimburses each
municipality on an annually declining percentage of the calculated tax on the investment.
II - 15
Since November 2005, Penn National Gaming has been operating “racino” (slot machine
operation) within the City. The racino facility includes approximately 110,000 square feet for
gaming, a 152 room seven story hotel and a 1,500 car parking garage. Based upon the results
of a November 2011 county-wide vote, the operation will include table games in the spring of 2012.
The Council adopted a policy directing all rents and state taxes received from the operation of
the slot facility to a separate special revenue fund, the Arena Fund. The primary purpose of
this fund is to provide the necessary resources to construct a new arena to replace the Bangor
Auditorium which opened in Bass Park in 1954. Based upon the results of a market sizing and
feasibility study, a schematic design and pricing for the replacement of the current auditorium and civic center, and a thorough review of the City’s financial capacity, the City Council took
action to contract for the design and construction of new arena/meeting complex. The final
budget was established to be $65 million. The project is to be funded by the revenue received
by the City from the gaming operation coupled with a portion of the existing Downtown Development TIF. In order to maximize the City’s financial resources for this project, area
legislators supported private and special legislation at the State level to exempt the debt issued
for this project from current legislative constraints (i.e. statutory debt limits, TIF debt limits and the 20 year limit on use of TIF revenues to pay debt service).
The City is subject to a state statutory system (known as LD 1). Generally, the growth of the
tax levy is limited to an increase equal to the ten year average percentage change in real
statewide personal income plus taxes from property value resulting from new construction,
major renovations to existing properties, or the subdivision of property less any “net new state
funding”. For Fiscal Year 2011, the City’s LD 1 tax levy limit was as follows:
Prior Year Base Municipal Commitment $ 22,554,913
Growth Factor: 7.12% Average Real Personal Income 1.78%
Property Growth Factor 5.34%
Net New State Funds -
Municipal Commitment Limit $ 24,160,432
The Fiscal Year 2011 budget was within the statutory tax levy limit.
The State’s “Essential Programs and Services” model, is a mechanism designed to allocate state
funding to local school units and to control local school expenditures. While the State’s model
recognizes what it considers to be essential programs and their appropriate funding level, the
Bangor School Department has identified a number of programs that are either under-funded or
not funded by this model. As a result, both the School Committee and the City Council voted to increase the educational spending limits for both Fiscal Year 2011 and 2012 in order to fund
such services and programs and their actions were approved, as required by State Statute via a
local election.
II - 16
In response to the continued uncertainty surrounding the national economy, management has
been closely tracking not only revenues and expenditures, but also foreclosure, liens,
unemployment rates, construction starts and related building permit levels, and the State of
Maine’s budgetary projections. To date, the City has seen only slight increases in foreclosure
and lien rates and will continue to monitor these levels and take steps to assist our tax/rate payers in obtaining assistance wherever possible. Both residential and commercial construction
and permitting has slowed.
The Maine State Legislative will return in January 2012. It is clear that a supplemental budget
appropriation will be necessary to address the State’s current year budget shortfall. City and
school management will closely monitor their actions, as resolution of their budget shortfall will
undoubtedly impact municipal/education funding in one form or another. During FY 2010 and FY 2011, the State supplemented its appropriation for State Aid to Education with American
Recovery and Reinvestment Act funds. In FY 2012, those funds were no longer available, but
that reduction was partially offset by Federal jobs grant funds. The FY 2013 budget is likely to
be a challenge to both the School Committee and the City Council, as federal educational funding that was available the last three years no longer exists.
We continue to monitor key revenue areas such as: flat investment yield curves, automobile excise taxes, property tax collection and State sales and income tax collections that impact the
City’s share of State Revenue Sharing. The fiscal year 2012 budget reflects the City’s historical
results for these revenue sources, and actual results to date appear to be on track with
budgetary estimates.
For the Fiscal Year 2012 budget, the City Council’s goal was to minimize any tax rate increase.
This goal was made more challenging due to a reduction in state aid to education funding,
increased county tax and relatively flat assessed value. These challenges were offset by
continued historically lower benefit utilization rates in our health insurance program (increase of
7.34% July 2011, decrease of 2.9% in January 2012), strategic reductions in staffing, no
employee cost of living adjustments, and a significant increase (37%) in BETE valuation. Based on all these factors, the City was able to maintain its 2011 tax rate.
User fees for governmental and business-type activities are reviewed on an annual basis to
ensure that fee structures are sufficient to cover service costs. Many fees are adjusted annually
for inflation.
Requests for Information
This financial report is designed to provide our citizens, taxpayers, customers, investors, and creditors with a general overview of the City of Bangor’s finances. Questions concerning any of
this information should be addressed to the Finance Director, City of Bangor, 73 Harlow Street,
Bangor, ME 04401.
BASIC FINANCIAL STATEMENTS
II - 17
Exhibit 1
CITY OF BANGOR, MAINE
Statement of Net Assets
June 30, 2011
Governmental Business-type
Activities Activities Total
ASSETS
Cash and cash equivalents 16,320,168$ 1,363,235$ 17,683,403$
Investments 5,805,340 16,211,552 22,016,892
Receivables:
Accounts (net of allowance of
$475,341 and $416,188, respectively)1,602,974 6,978,128 8,581,102
Intergovernmental 3,693,928 547,865 4,241,793
Taxes and liens receivable - prior years 1,219,362 - 1,219,362
Taxes receivable - current year 1,336,108 - 1,336,108
Deferred special assessments 30,130 87,664 117,794
Due from water district - 119,437 119,437
Loans 8,416,774 2,902,110 11,318,884
Internal balances 3,120,255 (3,120,255) -
Inventories 912,743 276,849 1,189,592
Prepaid items 51,027 42,111 93,138
Other assets 174,138 515,893 690,031
Non-depreciable capital assets 9,578,863 13,344,465 22,923,328
Depreciable capital assets, net 66,920,112 168,391,224 235,311,336
Total assets 119,181,922 207,660,278 326,842,200
LIABILITIES
Accounts payable and other current liabilities 2,690,515 2,375,708 5,066,223
Accrued wages and benefits payable 5,104,876 251,686 5,356,562
Unearned revenues 5,568,282 13,340 5,581,622
Noncurrent liabilities:
Due within one year 6,235,217 4,600,199 10,835,416
Due in more than one year 58,124,749 29,525,465 87,650,214
Total liabilities 77,723,639 36,766,398 114,490,037
NET ASSETS
Invested in capital assets, net of related debt 40,176,260 155,344,528 195,520,788
Restricted for:
Nonexpendable trust principal 608,710 - 608,710
Expendable income 410,337 - 410,337
Penobscot River 759 - 759
Unrestricted 262,217 15,549,352 15,811,569
Total net assets 41,458,283$ 170,893,880$ 212,352,163$
See accompanying notes to financial statements.
II - 18
Exhibit 2
Operating Capital
Charges for grants and grants and Governmental Business-type
Functions/programs Expenses services contributions contributions activities activities Total
Primary government
Governmental activities:
General government $9,223,718 2,070,189$ 405$ 10,980$ (7,142,144)$ -$ (7,142,144)$
Public safety 17,018,427 3,289,153 585,596 324,194 (12,819,484) - (12,819,484)
Health, community services and recreation 9,523,225 928,307 6,398,165 - (2,196,753) - (2,196,753)
Public services 12,413,601 3,922,847 - 2,093,901 (6,396,853) - (6,396,853)
Other agencies 4,479,888 20,248 - - (4,459,640) - (4,459,640)
Education 50,986,350 5,165,261 26,466,704 - (19,354,385) - (19,354,385)
Arena development 61,334 2,331,584 - - 2,270,250 - 2,270,250
Community development 1,542,975 323,494 821,849 599,374 201,742 - 201,742
Waterfront 1,439,065 - - - (1,439,065) - (1,439,065)
Public transportation 1,701,112 1,025,080 1,332,221 1,907,165 2,563,354 - 2,563,354
Economic development (tif)1,383,662 - - - (1,383,662) - (1,383,662)
Interest on debt 2,151,172 - - - (2,151,172) - (2,151,172)
Total governmental activities 111,924,529 19,076,163 35,604,940 4,935,614 (52,307,812) - (52,307,812)
Business-type activities:
Sewer Utility 6,202,202 7,340,935 - - - 1,138,733 1,138,733
Airport 20,458,552 13,080,217 - 3,717,755 - (3,660,580) (3,660,580)
Park Woods 496,478 372,715 - - - (123,763) (123,763)
Parking 1,206,989 1,057,710 - - - (149,279) (149,279)
Bass Park 2,075,644 1,276,869 - - - (798,775) (798,775)
Municipal Golf Course 664,311 643,501 - - - (20,810) (20,810)
Economic Development 618,980 585,785 - - - (33,195) (33,195)
Total business-type activities 31,723,156 24,357,732 - 3,717,755 - (3,647,669) (3,647,669)
Total primary government $143,647,685 43,433,895$ 35,604,940$ 8,653,369$ (52,307,812) (3,647,669) (55,955,481)
General revenues:
Property taxes, levied for general purposes 48,027,330 - 48,027,330
Payment in lieu of taxes 161,879 - 161,879
Excise taxes 4,515,752 - 4,515,752
Franchise taxes 367,672 - 367,672
Grants and contributions not restricted to specific programs:
Homestead/BETE exemption 1,163,339 - 1,163,339
Other State aid 25,749 - 25,749
State Revenue Sharing 3,670,723 - 3,670,723
Unrestricted investment earnings 565,326 752,891 1,318,217
Miscellaneous revenues 92,379 - 92,379
Transfers (637,898) 637,898 -
Total general revenues and transfers 57,952,251 1,390,789 59,343,040
Change in net assets 5,644,439 (2,256,880) 3,387,559
Net assets, beginning of year (Restated see Other Information Note H)35,813,844 173,150,760 208,964,604
Net assets, end of year 41,458,283$ 170,893,880$ 212,352,163$
See accompanying notes to financial statements.
Program Revenues in net assets
Primary Government
CITY OF BANGOR, MAINE
Statement of Activities
For the Fiscal Year Ended June 30, 2011
Net (expense) revenue and changes
II - 19
Exhibit 3
CITY OF BANGOR, MAINE
Balance Sheet
Governmental Funds June 30, 2011
Community Capital Other Total
Development Arena Projects Governmental Governmental
General Block Grant Fund Fund Funds Funds
ASSETS
Assets
Cash and cash equivalents 13,518,284$ 349$ 1,434,068$ 1,051,411$ 316,056$ 16,320,168$
Investments 50,000 - 5,639,844 759 114,737 5,805,340
Receivables:
Taxes 2,555,470 - - - - 2,555,470
Accounts (net of allowance of $475,341)1,425,307 - 176,743 784 140 1,602,974
Interfund 3,251,585 - - - 63,200 3,314,785
Intergovernmental 2,823,413 560,272 - 146,371 163,872 3,693,928
Loans/Notes (net of $170,317 allowance)945,289 5,026,608 - - 2,444,877 8,416,774
Deferred special assessments - - - 30,130 - 30,130
Inventory, at cost 912,743 - - - - 912,743
Due from bond trustee - - - 174,138 - 174,138
Prepaid items 51,027 - - - - 51,027
Total assets 25,533,118$ 5,587,229$ 7,250,655$ 1,403,593$ 3,102,882$ 42,877,477$
LIABILITIES AND FUND BALANCES
Liabilities
Accounts payable 1,111,343$ 2,140$ 560,368$ 356,660$ 40,711$ 2,071,222$
Accrued wages and benefits payable 5,091,810 - - - 13,066 5,104,876
Interfund loans payable - 63,200 - - 131,330 194,530
Deferred revenues 2,305,395 5,026,608 - 220,532 273,623 7,826,158
Due to rehabilitation recipients - 148,676 - - - 148,676
Total liabilities 8,508,548 5,240,624 560,368 577,192 458,730 15,345,462
Fund balances (Note J)
Nonspendable 2,864,270 - - - 608,710 3,472,980
Restricted 1,618,627 346,605 - 759 2,047,699 4,013,690
Committed 19,033 - 6,690,287 - - 6,709,320
Assigned 4,504,700 - - 826,179 - 5,330,879
Unassigned 8,017,940 - - (537) (12,257) 8,005,146
Total fund balances (deficits)17,024,570 346,605 6,690,287 826,401 2,644,152 27,532,015
Total liabilities and fund balances 25,533,118$ 5,587,229$ 7,250,655$ 1,403,593$ 3,102,882$
Amounts reported for governmental activities in the statement of net assets are different because:
Capital assets used in governmental activities are not financial resources and, therefore, are not
reported in the funds.76,498,975
Deferred taxes are not available to pay for current-period expenditure and, therefore,
are deferred in the funds.2,257,876
Long-term liabilities, including bonds payable $58,455,666, accrued interest $470,617, compensated
absences $2,417,225, self insurance liability $1,726,580, and net OPEB obligation $1,760,495
are not due and payable in the current period and, therefore, are not reported in the funds.(64,830,583)
Net assets of governmental funds 41,458,283$
See accompanying notes to financial statements.
II - 20
Exhibit 4
CITY OF BANGOR, MAINE
Statement of Revenues, Expenditures and Changes in Fund Balances
Governmental FundsFor the Fiscal Year Ended June 30, 2011
Community Capital Other Total
Development Arena Projects Governmental Governmental
General Block Grant Fund Fund Funds Funds
Revenues
Taxes $50,578,542 -$ -$ 1,504,479$ 803,933$ 52,886,954$
Intergovernmental 34,312,276 821,849 - 4,855,718 5,314,317 45,304,160
Licenses and permits 601,202 - - - - 601,202
Charges for services 14,141,121 - - - 1,085,454 15,226,575
Program income - 288,128 - - 26,075 314,203
Revenue from use of money and property 810,705 1,895 2,376,296 90,922 194,157 3,473,975
Other 39,090 8,442 - 201,203 30,691 279,426
Total revenues 100,482,936 1,120,314 2,376,296 6,652,322 7,454,627 118,086,495
Expenditures
Current:
General government 4,858,721 - - - - 4,858,721
Public safety 15,800,938 - - - - 15,800,938
Health, community services and recreation 5,584,184 - - - - 5,584,184
Public services 10,196,576 - - - - 10,196,576
Other agencies 4,347,617 - 400,000 - - 4,747,617
Education 51,391,657 - - - - 51,391,657
Tax increment financing 165,133 - - - - 165,133
Unclassified 56,882 - 61,334 - - 118,216
Restricted grants - 922,090 - - 7,310,058 8,232,148
Capital outlay 529,990 - 3,096,655 9,173,333 - 12,799,978
Debt service 4,813,592 - - 1,469,981 - 6,283,573
Total expenditures 97,745,290 922,090 3,557,989 10,643,314 7,310,058 120,178,741
Excess (deficiency) of revenues over (under) expenditures 2,737,646 198,224 (1,181,693) (3,990,992) 144,569 (2,092,246)
Other financing sources (uses)
Issuance of debt - - - 2,086,100 - 2,086,100
Sale of assets 94,165 - - 23,393 - 117,558
Transfers to other funds (1,779,193) - (154,890) (14,820) (66,100) (2,015,003)
Transfers from other funds 49,681 - - 1,258,711 68,713 1,377,105
Total other financing sources (uses)(1,635,347) - (154,890) 3,353,384 2,613 1,565,760
Changes in fund balances 1,102,299 198,224 (1,336,583) (637,608) 147,182 (526,486)
Fund balances (deficit), beginning of year (Restated see Other Information Note H)15,922,271 148,381 8,026,870 1,464,009 2,496,970 28,058,501
Fund balances, end of year $17,024,570 346,605$ 6,690,287$ 826,401$ 2,644,152$ 27,532,015$
See accompanying notes to financial statements.
II - 21
Exhibit 5
CITY OF BANGOR, MAINE
Reconciliation of the Statement of Revenues, Expenditures
and Changes in Fund Balances of Governmental Funds
to the Statement of Activities
For the Fiscal Year Ended June 30, 2011
Net change in fund balances - total governmental funds (from Exhibit 4)(526,486)$
Amounts reported for governmental activities in the statement of
activities (Exhibit 2) are different because:
Governmental funds report capital outlays as expenditures.
However, in the statement of activities, the cost of those assets is
allocated over their estimated useful lives as depreciation expense.
This is the amount by which capital outlays of $7,091,266 exceeded
depreciation expense of $3,795,761 and disposals of $25,179.3,270,326
Financing proceeds provide current financial resources to governmental
funds, but issuing debt increases long-term liabilities in the statement
of net assets. Repayment of bond principal is an expenditure in the
governmental funds, but the repayment reduces long-term liabilities
in the statement of net assets. This is the amount by which financing
proceeds of $2,086,100 in general obligation bonds were less than
principal payments of $5,319,881.3,233,781
Some items reported in the statement of activities do not require
the use of current financial resources and, therefore, are not reported
in governmental fund statements. The differences are as follows:
increase net OPEB obligation ($241,437), compensated absences
($1,500), self insurance liability ($240,872), deferred taxes ($27,992),
and decrease in accrued interest ($122,635).(333,182)
Change in net assets of governmental activities (see Exhibit 2)5,644,439$
See accompanying notes to financial statements.
II - 22
Exhibit 6
CITY OF BANGOR, MAINE
Statement of Revenues, Expenditures and Changes in
Unassigned Fund Balance Budget and Actual
General Fund
For the Fiscal Year Ended June 30, 2011
Variance with
Final Budget
Positive
Original Final Actual (Negative)
Revenues
Taxes 50,480,738$ 50,480,738$ 50,578,542$ 97,804$
Intergovernmental 29,415,275 29,426,576 29,819,721 393,145
Licenses and permits 652,500 652,500 601,202 (51,298)
Charges for services:
municipal 8,062,681 8,062,681 8,593,548 530,867
school 4,696,353 4,696,353 5,165,260 468,907
Fines, forfeits and penalties 36,700 36,700 39,090 2,390
Revenue from use of money and property
municipal 656,712 656,712 673,313 16,601
Total revenues 94,000,959 94,012,260 95,470,676 1,458,416
Expenditures
Current:
General government 4,944,890 4,949,389 4,831,230 118,159
Public safety 15,947,675 15,958,977 15,818,234 140,743
Health, community services and recreation 4,387,815 4,387,815 5,582,253 (1,194,438)
Public buildings and services 10,159,149 10,159,149 10,192,831 (33,682)
Other agencies 4,302,729 4,366,923 4,347,617 19,306
Education 49,807,606 53,819,034 47,889,514 5,929,520
Unclassified 494,424 494,424 504,344 (9,920)
Debt service 4,769,272 4,769,272 4,813,592 (44,320)
Total expenditures 94,813,560 98,904,983 93,979,615 4,969,688
Excess (deficiency) of revenues
over/under expenditures (812,601) (4,892,723) 1,491,061 6,428,104
Other financing sources (uses)
Appropriation from restricted, committed
and assigned fund balances 1,630,151 1,630,151 272,822 (1,357,329)
Sale of assets 4,000 4,000 44,563 40,563
Contributions - - 260 260
Insurance Settlements 5,200 5,200 25,000 19,800
Transfers to other funds (342,500) (342,500) (414,000) (71,500)
Transfers from other funds 27,000 31,500 24,500 (7,000)
Operating transfers (511,250) (511,250) (511,250) -
Total other financing sources (uses)812,601 817,101 (558,105) (1,375,206)
Net change in fund balance -$ (4,075,622)$ 932,956 5,052,898$
Unassigned fund balance, beginning of year 8,499,692
Changes in fund balance classification in accordance with GAAP
Changes in balances carried (200,938)
Advance to other funds (250,000)
Inventory and prepaids (GASB 54)(963,770)
Unassigned fund balance, end of year 8,017,940$
See accompanying notes to financial statements.
Budgeted amounts
Continued on next page
II - 23
Exhibit 7
CITY OF BANGOR, MAINE
Statement of Net Assets
Proprietary Funds
June 30, 2011
Business-type Activities - Enterprise Funds
Sewer Economic Nonmajor Total
Utility Airport Development Proprietary Proprietary
Fund Fund Fund Funds Funds
ASSETS
Current assets
Cash and cash equivalents 607,847$ 3,813$ 2,688$ 748,887$ 1,363,235$
Investments - 9,124,814 - - 9,124,814
Accounts receivable 2,018,300 5,299,817 - 76,199 7,394,316
Less allowance for uncollectible accounts (22,601) (383,587) - (10,000) (416,188)
Net accounts receivable 1,995,699 4,916,230 - 66,199 6,978,128
Due from other governments - 547,865 - - 547,865
Due from water district 119,437 - - - 119,437
Inventories, at cost - 258,984 - 17,865 276,849
Prepaid items 9,655 11,643 - 20,813 42,111
Total current assets 2,732,638 14,863,349 2,688 853,764 18,452,439
Noncurrent assets
Capital Assets:
Land and improvements 683,865 - 3,645,527 2,718,678 7,048,070
Buildings and improvements 27,539,270 - 3,760,216 11,587,217 42,886,703
Machinery and equipment 5,629,439 - - 483,999 6,113,438
Infrastructure 57,071,570 - 683,189 - 57,754,759
Aircraft operational assets - 246,145,884 - - 246,145,884
Parking structures - - - 11,350,354 11,350,354
Construction in process 1,197,989 8,169,438 - - 9,367,427
92,122,133 254,315,322 8,088,932 26,140,248 380,666,635
Less accumulated depreciation (36,884,945) (144,665,140) (1,313,070) (16,067,791) (198,930,946)
Net capital assets 55,237,188 109,650,182 6,775,862 10,072,457 181,735,689
Investments - 7,086,738 - - 7,086,738
Loans receivable - 1,318,253 1,583,857 - 2,902,110
Deferred special assessments 87,664 - - - 87,664
Due from bond trustee 495,893 - - - 495,893
Deposits - - - 20,000 20,000
Total noncurrent assets 55,820,745 118,055,173 8,359,719 10,092,457 192,328,094
Total assets 58,553,383 132,918,522 8,362,407 10,946,221 210,780,533
See accompanying notes to financial statements.
Continued from previous page
II - 24
Exhibit 7 (con't)
CITY OF BANGOR, MAINE
Statement of Net Assets
Proprietary Funds
June 30, 2011
Business-type Activities - Enterprise Funds
Sewer Economic Nonmajor Total
Utility Airport Development Proprietary Proprietary
Fund Fund Fund Funds Funds
LIABILITIES
Current liabilities
Accounts payable 304,377 1,677,659 3,432 88,471 2,073,939
Accrued wages and benefits payable 35,030 182,899 - 33,757 251,686
Accrued interest 125,643 44,649 71,825 42,355 284,472
Workers' compensation 20,000 156,969 - 8,010 184,979
Unearned revenue - - - 13,340 13,340
Accrued compensated absences 116,546 394,992 - 107,478 619,016
Interfund loans payable - 94,000 508,400 2,517,855 3,120,255
General obligation debt payable 2,570,411 659,191 212,614 353,988 3,796,204
Other liabilities - 17,297 - - 17,297
Total current liabilities 3,172,007 3,227,656 796,271 3,165,254 10,361,188
Long-term liabilities
Workers' compensation - 250,431 - 11,990 262,421
General obligation debt payable 14,861,793 6,582,748 3,427,330 3,317,262 28,189,133
Net OPEB obligation 105,149 388,096 - 69,383 562,628
Other long-term liabilities 298,269 - - 213,014 511,283
Total long-term liabilities 15,265,211 7,221,275 3,427,330 3,611,649 29,525,465
Total liabilities 18,437,218 10,448,931 4,223,601 6,776,903 39,886,653
NET ASSETS
Invested in capital assets, net of related debt 39,238,207 105,895,093 3,135,918 7,075,310 155,344,528
Unrestricted 877,958 16,574,498 1,002,888 (2,905,992) 15,549,352
Total net assets 40,116,165$ 122,469,591$ 4,138,806$ 4,169,318$ 170,893,880$
See accompanying notes to financial statements.
II - 25
Exhibit 8
CITY OF BANGOR, MAINE
Statement of Revenues, Expenses and Changes in Net Assets
Proprietary Funds
For the Fiscal Year Ended June 30, 2011
Business-type Activities - Enterprise Funds
Sewer Economic Nonmajor Total
Utility Airport Development Proprietary Proprietary
Fund Fund Fund Funds Funds
Operating revenues
Charges for services 7,337,750$ 13,077,529$ 432,094$ 3,350,795$ 24,198,168$
Operating expenses
Operating expenses other than
depreciation and amortization 3,978,374 12,531,225 207,129 3,563,152 20,279,880
Depreciation and amortization 1,702,695 7,546,961 184,498 692,238 10,126,392
Total operating expenses 5,681,069 20,078,186 391,627 4,255,390 30,406,272
Operating income (loss)1,656,681 (7,000,657) 40,467 (904,595) (6,208,104)
Nonoperating revenue (expenses)
Interest income 57,504 602,108 92,234 1,045 752,891
Interest expense (521,133) (380,366) (227,353) (188,032) (1,316,884)
Gain on sale of assets - - 153,691 - 153,691
Miscellaneous income (expense)3,185 2,688 - - 5,873
Total nonoperating revenue (expenses)(460,444) 224,430 18,572 (186,987) (404,429)
Net income (loss) before grants/contributions and transfers 1,196,237 (6,776,227) 59,039 (1,091,582) (6,612,533)
Grants/contributions received for capital assets - 3,717,755 - - 3,717,755
Transfers to other funds (50,000) - - (19,842) (69,842)
Transfers from other funds - - - 707,740 707,740
Change in net assets 1,146,237 (3,058,472) 59,039 (403,684) (2,256,880)
Net assets, beginning of year (Restated see Other Information Note H)38,969,928 125,528,063 4,079,767 4,573,002 173,150,760
Net assets, end of year 40,116,165$ 122,469,591$ 4,138,806$ 4,169,318$ 170,893,880$
See accompanying notes to financial statements.
Continued on next page
II - 26
Exhibit 9
CITY OF BANGOR, MAINE
Statement of Cash Flows - Proprietary Funds
For the Fiscal Year Ended June 30, 2011
Business-type Activities - Enterprise Funds
Sewer Economic Nonmajor Total
Utility Airport Development Proprietary Proprietary
Fund Fund Fund Funds Funds
Cash flows from operating activities
Cash received from customers 6,984,300$ 11,251,582$ 432,094$ 3,349,120$ 22,017,096$
Cash paid to suppliers for goods and services (2,510,982) (4,753,817) (208,991) (2,215,590) (9,689,380)
Cash paid to employees for services (1,446,920) (6,888,397) - (1,367,080) (9,702,397)
Net cash provided by (used in) operating
activities 3,026,398 (390,632) 223,103 (233,550) 2,625,319
Cash flows from noncapital financing activities
Interfund loans (repayments)- 94,000 (230,000) 261,900 125,900
Transfers in - - - 707,740 707,740
Transfers out (50,000) - - (19,842) (69,842)
Net cash provided by (used in) noncapital
financing activities (50,000) 94,000 (230,000) 949,798 763,798
Cash flows from capital and related financing activities
Proceeds from general obligation bonds 2,473,900 - - 1,831,000 4,304,900
Acquisition and construction of capital assets (1,130,872) (4,028,946) - (5,495) (5,165,313)
Principal paid on general obligation bonds (4,036,341) (636,330) (198,340) (2,405,101) (7,276,112)
Interest paid on general obligation bonds (547,535) (384,986) (197,866) (188,786) (1,319,173)
Proceeds from sale of property 3,185 2,688 174,139 - 180,012
Grant monies received for capital assets - 3,717,755 - - 3,717,755
Net cash provided by (used in) capital and related
financing activities (3,237,663) (1,329,819) (222,067) (768,382) (5,557,931)
Cash flows from investing activities
Net sales (purchases) of investments - (518,799) - - (518,799)
Investment of unexpended bond proceeds 313,891 - - - 313,891
Interest on investments 57,505 602,108 92,234 1,129 752,976
Loan repayments - 161,643 22,910 - 184,553
Net cash provided by (used in) investing activities 371,396 244,952 115,144 1,129 732,621
Net increase (decrease) in cash 110,131 (1,381,499) (113,820) (51,005) (1,436,193)
Cash, beginning of year (Restated see Other Information Note H)497,716 1,385,312 116,508 799,892 2,799,428
Cash, end of year 607,847$ 3,813$ 2,688$ 748,887$ 1,363,235$
Schedule of noncash investing, capital and financing activities:
During the year, the Airport Fund had an unrealized gain on investments in the amount of $806,297.
During the year, the Economic Development Fund recorded a prior period adjustment which resulted in a decrease of capital assets and
accumulated depreciation in the amounts of $1,457,621 and $358.008, respectively.
See accompanying notes to financial statements.
Continued from previous page
II - 27
Exhibit 9 (con't)
CITY OF BANGOR, MAINE
Statement of Cash Flows - Proprietary Funds
For the Fiscal Year Ended June 30, 2011
Business-type Activities - Enterprise Funds
Sewer Economic Nonmajor Total
Utility Airport Development Proprietary Proprietary
Fund Fund Fund Funds Funds
Reconciliation of operating income (loss) to net
cash provided by (used in) operating activities
Operating income (loss)1,656,681$ (7,000,657)$ 40,467$ (904,595)$ (6,208,104)$
Adjustments to reconcile operating income (loss)
to net cash provided by (used in) operating
activities
Depreciation and amortization 1,702,695 7,546,961 184,498 692,238 10,126,392
Changes in assets and liabilities:
(Increase) decrease in accounts receivable (319,533) (1,825,947) - 12,617 (2,132,863)
(Increase) decrease in due from water district (33,917) - - - (33,917)
(Increase) decrease in inventories - (5,866) - 240 (5,626)
(Increase) decrease in prepaid items 26,196 23,185 - (7,496) 41,885
Increase (decrease) in accounts payable (8,658) 879,458 (1,862) (13,168) 855,770
Increase (decrease) in unearned revenue - - - (14,292) (14,292)
Increase (decrease) in other liabilities 2,934 (7,766) - 906 (3,926)
Total adjustments 1,369,717 6,610,025 182,636 671,045 8,833,423
Net cash provided by (used in) operating activities 3,026,398$ (390,632)$ 223,103$ (233,550)$ 2,625,319$
See accompanying notes to financial statements.
II - 28
Exhibit 10
CITY OF BANGOR, MAINE
Statement of Fiduciary Net Assets
Fiduciary FundsJune 30, 2011
Agency
Fund
ASSETS
Cash and cash equivalents $112,877
Total assets $112,877
LIABILITIES
Liabilities:
Amounts held for others $112,877
Total liabilities $112,877
See accompanying notes to financial statements.
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INDEX OF NOTES TO THE FINANCIAL STATEMENTS
Note Page
Summary of Significant Accounting Policies
A Reporting Entity II – 29
B Government-wide and Fund Financial Statements II – 29 C Measurement Focus, Basis of Accounting and Basis of Presentation II – 30
D Assets, Liabilities and Equity II – 32
Stewardship, Compliance and Accountability
A Budgetary Information II – 35 B Reconciliation of Budgetary Basis Statements II – 35
C Excess of Expenditures Over Appropriations II – 36
D Deficit Fund Equity II – 36
E Restricted Assets II – 36
Detailed Notes on All Funds
A Deposits and Investments II – 37
B Property Tax II – 38
C Capital Assets II – 38
D Interfund Transactions II – 40
E Due From Other Governments II – 41 F Leases II – 41
G Other Assets II – 42
H Deferred/Unearned Revenue II – 42 I Long-Term Debt II – 42 J Fund Balances II – 46
K Net Assets II – 47 Other Information
A Risk Management II – 47 B Tax Increment Financing Districts II – 48
C Contingent Liabilities II – 49 D Retirement II – 49 E Other Postemployment Benefits II – 51
F Landfill Closure and Postclosure Care Costs II – 53
G Subsequent Events II – 53
H Restatement II – 53
II - 29
CITY OF BANGOR, MAINE Notes to the Financial Statements June 30, 2011
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Reporting Entity
The City of Bangor was incorporated under the laws of the State of Maine in 1834 and operates under
a council/manager form of government. In evaluating how to define the reporting entity, for financial
reporting purposes, management has considered all potential component units. The criteria used to determine which entities, agencies, commissions, boards and authorities are part of the City’s
operations include how the budget is adopted, whether debt is secured by general obligation of the
City, the City’s duty to cover any deficits that may occur, and supervision over the accounting
functions. Based upon all pertinent facts derived from the analysis of the above criteria, it was
determined that no additional entities should be included as part of these financial statements.
The City of Bangor is a member of the Joint Venture of the Equity Charter Municipalities of Municipal
Review Committee, Inc (Joint Venture). The Joint Venture is an organization that resulted from a
contractual arrangement between certain member municipalities, Penobscot Energy Recovery Company
(PERC) and Bangor Hydro Electric Company. It was formed to pool resources of the Equity Charter
Municipalities for the long-term goal of handling the disposal of their present and projected volumes of
non-hazardous municipal solid waste. As of December 31, 2010 (most recent data available) the City
of Bangor’s share of the Joint Venture’s net assets was $6,001,557. Complete financial statements
may be obtained from Municipal Review Committee, 40 Harlow Street, Bangor, ME 04401.
B. Government-wide and Fund Financial Statements
The government-wide financial statements (i.e., the statement of net assets and the statement of
activities) report information on all of the nonfiduciary activities of the City. For the most part, the
effect of interfund activity has been removed from these statements. Governmental activities, which
normally are supported by taxes and intergovernmental revenues, are reported separately from
business-type activities, which rely to a significant extent on fees and charges for support.
The statement of activities demonstrates the degree to which the direct expenses of a given function
or segments are offset by program revenues. Direct expenses are those that are clearly identifiable
with a specific function or segment. The City has elected not to allocate indirect costs among the
programs, functions and segments. Program revenues include 1) charges to customers or applicants
who purchase, use, or directly benefit from goods, services, or privileges provided by a given function
or segment and 2) grants and contributions that are restricted to meeting the operational or capital
requirements of a particular function or segment. Taxes and other items not properly included among
program revenues are reported as general revenues.
Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary
funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns
in the fund financial statements.
CITY OF BANGOR, MAINE Notes to the Financial Statements, Continued
II - 30
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED
C. Measurement Focus, Basis of Accounting and Basis of Presentation
The government-wide financial statements are reported using the economic resources measurement
focus and the accrual basis of accounting, as are the proprietary fund financial statements. Revenues are
recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied.
Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the
provider have been met.
Governmental fund financial statements are reported using the current financial resources measurement
focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the
current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the
government considers revenues to be available if they are collected within 60 days of the end of the
current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual
accounting. However, debt service expenditures, as well as certain compensated absences and claims and
judgments, are recorded only when the payment is due.
Those revenues susceptible to accrual are property taxes, interest, and charges for services. Other
receipts and taxes become measurable and available when cash is received by the City and are
recognized as revenue at that time.
Entitlements and shared revenues are recorded at the time of receipt or earlier if the susceptible to
accrual criteria are met. Expenditure-driven grants are recognized as revenue when the qualifying
expenditures have been incurred and all other grant requirements have been met.
The City reports the following major governmental funds:
The General Fund is the City’s primary operating fund. It accounts for all financial resources of the
general government, except those required to be accounted for in another fund.
The Community Development Block Grant Fund accounts for federal grants obtained and expended
under the Housing and Community Development Act of 1974, as amended, for the development of
viable urban communities.
The Arena Fund accounts for the percentage of slot revenues received by the City from the
operation of the Racino. Said funds will be used to replace the Bangor Auditorium.
The Capital Projects Fund accounts for the acquisition of capital assets or construction of major
capital projects not being financed by proprietary or fiduciary funds.
The City reports the following major proprietary funds:
The Sewer Utility fund accounts for the costs of construction and operation of the sewage
treatment plant, the City sewer system, and sewer operation activities, and is self-supported through sewer user fees.
CITY OF BANGOR, MAINE Notes to the Financial Statements, Continued
II - 31
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED
The Airport Fund accounts for the operation of Bangor International Airport. The principal
sources of revenues are landing fees and the sale of aviation fuel. Other revenue sources include
lease payments for the use of terminal space and non-aviation industrial buildings.
The Economic Development Fund accounts for the operation and development of properties acquired by the City. Its purpose is to promote economic growth within the City. The principal
source of revenue is rental income.
Additionally, the City reports the following fund type:
Fiduciary funds account for assets held by the City in a trustee capacity or as an agent on behalf of others. The City’s fiduciary funds include the following fund type:
Agency funds account for assets the City holds for others in an agency capacity. They are
custodial in nature and do not present results of operations of the City or have a
measurement focus. Agency funds are accounted for using the accrual basis of accounting.
The City serves as an agent for the American Folk Festival, Bangor Area Stormwater Group
and various School Activity funds.
Private-sector standards of accounting and financial reporting issued prior to December 1, 1989,
generally are followed in both the government-wide and proprietary fund financial statements to the
extent that those standards do not conflict with or contradict guidance of the Governmental Accounting
Standards Board. Governments also have the option of following subsequent private-sector guidance
for their business-type activities and enterprise funds, subject to the same limitation. The City has
elected not to follow subsequent private-sector guidance.
As a general rule, the effect of interfund activity has been eliminated from the government-wide financial
statements. Exceptions to this general rule are charges between the City’s public services function and
various other functions of the government. Elimination of these charges would distort the direct costs
and program revenues reported for the various functions concerned.
Amounts reported as program revenues include 1) charges to customers or applicants for goods, services,
or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions,
including special assessments. Internally dedicated resources are reported as general revenues rather
than as program revenues. Likewise, general revenues include all taxes.
Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating
revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of
the City’s proprietary fund are charges to customers for sales and services. Operating expenses include
the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses.
CITY OF BANGOR, MAINE Notes to the Financial Statements, Continued
II - 32
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED
D. Assets, Liabilities and Equity
1. Deposits and Investments
Cash includes amounts in demand deposits as well as short-term investments with a maturity date
within three months of the date acquired by the City.
State statutes authorize the City to invest in obligations of the U. S. Treasury, commercial paper,
corporate bonds and repurchase agreements. City policy prohibits the investment in so-called “derivative instruments”.
Investments are reported at fair value. Income earned from the investment of pooled cash is allocated
to various funds based upon the average cash balance allocated to the fund.
2. Interfund Receivables and Payables
Activity between funds that are representative of lending/borrowing arrangements outstanding at the
end of the fiscal year are referred to as either “interfund loans” (i.e., current portion of interfund loans)
or “advances to/from other funds” (i.e., the non-current portion of interfund loans). Any residual
balances outstanding between the governmental activities and business-type activities are reported in
the government-wide financial statements as “internal balances”.
Advances between funds are offset by a fund balance reserve account in applicable governmental
funds to indicate that they are not available for appropriation and are not expendable, available
financial resources.
3. Inventories and Prepaid Items
Inventories consist of expendable supplies held for consumption and are valued at cost. The cost of
inventories are recognized as expenditures/expenses when consumed rather than when purchased.
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as
prepaid items in both government-wide and fund financial statements.
CITY OF BANGOR, MAINE Notes to the Financial Statements, Continued
II - 33
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED
4. Capital Assets
Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, bridges, sidewalks, sewer mains and similar items), are reported in the applicable governmental or business-type
activities columns in the government-wide financial statements. Capital assets are defined by the City as
assets with an initial, individual cost of more than $10,000 for machinery/equipment/vehicles, $25,000 for land/buildings and improvements and $100,000 for infrastructure and an estimated useful life in excess of
one year. Such assets are recorded at historical cost or estimated historical cost if purchased or
constructed. Donated capital assets are recorded at estimated fair market value at the date of donation.
The costs of normal repairs and maintenance that do not add to the value of the asset or materially
extend assets lives are not capitalized.
Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest
incurred during the construction phase of capital assets of business-type activities is included as part of
the capitalized value of the assets constructed.
Property, plant, and equipment of the primary government is depreciated using the straight-line method
over the assets' estimated useful lives.
The range of useful lives used to compute depreciation are as follows:
Buildings 25 – 50 years
Equipment 5 – 20 years
Infrastructure 10 – 50 years
Aircraft Operational 5 – 40 years
Parking Structures 10 – 20 years
5. Compensated Absences
Accumulated vacation or compensatory time or vested sick leave of governmental funds that is
expected to be liquidated with expendable available resources is reported as an expenditure in
respective fund financial statements only if the liability has matured, for example, as a result of
employee resignations and retirements. All accumulated leave, including that which is not expected to
be liquidated with expendable available financial resources, is reported in the government-wide
financial statements. Accumulated leave of Enterprise Funds is recorded as an expense and liability of
the respective fund as the benefits accrue to employees. No liability is recorded for non-accumulating
rights to receive sick pay benefits.
6. Long-term Obligations
In the government-wide financial statements, and proprietary fund types in the fund financial
statements, long-term debt and other long-term obligations are reported as liabilities in the applicable
governmental activities, business-type activities, or proprietary fund type statement of net assets. Bond premiums and discounts, as well as issuance costs if material to basic financial statements, are
deferred and amortized over the life of the bonds using the straight-line method. Bonds payable are
CITY OF BANGOR, MAINE Notes to the Financial Statements, Continued
II - 34
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED
reported net of the applicable bond premium or discount. Bond issuance costs are reported as
deferred charges and amortized over the term of the related debt.
In the fund financial statements, governmental fund types recognize bond premiums and discounts, as
well as bond issuance costs, during the current period. The face amount of debt is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while
discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not
withheld from the actual debt proceeds received, are reported as debt service expenditures.
7. Fund Equity
In the fund financial statements, governmental funds report fund balances in one of five possible
classifications. Classification is based primarily on the extent to which the City is bound to honor
constraints on the specific purposes for which the funds can be spent. The categories are as follows;
Nonspendable fund balance cannot be spent.
Restricted fund balances are subject to externally enforceable legal restrictions.
Committed fund balances are subject to limitations the City Council has imposed, that are binding
unless removed in the same manner.
Assigned fund balances reflect the intended use of the resources.
Unassigned fund balances are resources which have not be classified in any other category. Only
the General Fund can report a positive unassigned fund balance amount.
Should there be multiple sources of funding available for a particular purpose, it is the City’s policy to
expend currently budgeted resources first, then use other sources in the order of restricted, then
committed, then assigned amounts.
8. Allowance for Uncollectible Accounts and Loans
Allowances for uncollectible accounts are maintained for all types of receivables, which historically
experience uncollectible accounts. Allowances for uncollectible loans are established when the City
determines its ability to collect the outstanding loan balance has been impaired.
9. Use of Estimates
Preparation of the City’s financial statements requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent
items at the date of the financial statements and the reported amounts of revenues and
expenses/expenditures during the reporting period. Actual results could differ from those estimates.
CITY OF BANGOR, MAINE Notes to the Financial Statements, Continued
II - 35
Excess of revenues over expenditures and
other financing sources and uses (Budget)932,956$
Activity in assigned fund balance (252,779)
2011 encumbrances 1,381,741
2010 encumbrances (2,466)
2010 encumbrances lapsed (957,153)
Excess of revenues and other financing sources
over expenditures and other uses (GAAP)1,102,299$
STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY
A. Budgetary Information
Budgets are prepared on a modified accrual basis of accounting, with the exception of depreciation
within the enterprise funds. Budgets for the General Fund and enterprise funds are formally adopted
each year through the passage of an appropriation resolve. Budgets for special revenue and capital projects funds have adopted project-length budgets. Unencumbered appropriations lapse at fiscal year
end.
Encumbrances represent commitments related to unperformed contracts for goods or services.
Encumbrance accounting is employed in governmental funds. Encumbrances (i.e., purchase orders,
contracts, and other commitments) outstanding at year end are reported in assigned fund balance and
do not constitute expenditures or liabilities because the commitments have not been honored in the
current year. For budgetary purposes, encumbrances are treated as expenditures within both
governmental and proprietary fund types.
On or before the second Monday in April, the City Manager submits to the City Council a proposed
operating budget for the ensuing fiscal year. The Council holds public meetings and a final budget
must be prepared and adopted no later than June 30th. Should the Council fail to adopt an operating
budget on or before June 30th, by Charter, the budget proposed by the City Manager becomes
effective.
The budget is adopted at the department level through the passage of appropriation resolves. The City Manager may make transfers of appropriations within a department. Transfers between
departments or additional appropriations require the approval of the City Council. The City Council
made several supplementary budgetary appropriations throughout the year, none of which were material.
B. Reconciliation of Budgetary Basis Statements
The following schedule reconciles the General Fund amounts on the Statement of Revenues,
Expenditures, and Changes in Fund Balance—Budget and Actual—Budgetary Basis to the amounts on the Statement of Revenues, Expenditures, and Changes in Fund Balances, Governmental Funds:
CITY OF BANGOR, MAINE Notes to the Financial Statements, Continued
II - 36
Excess (deficiency) of revenues over expenditures and encumbrances:Sewer (1,402,313)$
Airport (7,253,808)
Park Woods (84,927)
Parking (337,614) Bass Park (478,552)
Municipal Golf Course (62,394)
Economic Development (86,904)
(9,706,512) Nonoperating revenues classification (1,321,733)
Investments at market value (89,526)
Capital outlay 5,496
Adjustments for accrual basis (154,261)
Principal payments 3,946,212 *
2010 encumbrances (66,455)
Nonoperating expenses classification 1,178,675
Operating loss (6,208,104)$
* the budgetary basis excludes $3,329,900 of principal payments to refund debt
STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY, CONTINUED
The following schedule reconciles the amounts on the enterprise funds’ Schedules of Revenues,
Expenditures and Encumbrances—Budget and Actual—Budgetary Basis to the amount on the Combined Statement of Revenues, Expenses, and Changes in Net Assets:
C. Excess of Expenditures Over Appropriations
The following General Fund departments were over-expended by the indicated dollar amounts; City
Clerk $2,716, Assessing $1,086, Insurance $7,677, Fire $203,275, Health and Community Services
$1,060,961, Parks and Recreation $133,477, Public Buildings and Services $33,682, Public Library
$400, Pensions and Other Fringe Benefits $26,600, and Debt Service $44,320. These over-
expenditures were funded by receipt of revenues in excess of appropriation and under-expenditures
within other General Fund departments.
The Bass Park Fund was over-expended by $272,465, due to depreciation expense and increased
supplies and contractual services expenses.
D. Deficit Fund Equity
The Grant Fund has a deficit fund equity of $12,257 which is expected to be funded in subsequent
years with program income.
E. Restricted Assets
Donations received by the City whose use is limited are placed in the appropriate Special Revenue fund, depending upon whether or not the principal can be expended. All changes in market value are
added to the earnings, which is allowable by State Statute. As these amounts are invested in a note
receivable, there was no change in market value for fiscal year 2011.
CITY OF BANGOR, MAINE Notes to the Financial Statements, Continued
II - 37
Investment types Fair Value Not Applicable <1 1-5 6-10
Mutual Funds 7,175,265$ 7,175,265$ -$ -$ -$ US Treasuries 8,280,985 - 523,710 6,026,628 1,730,647
Common Stock 870,797 870,797 - - -
Certificate of Deposit 5,689,845 - 4,603,155 1,086,690 -
Totals 22,016,892$ 8,046,062$ 5,126,865$ 7,113,318$ 1,730,647$
Maturity (years)
DETAILED NOTES ON ALL FUNDS
A. Deposits and Investments
The City maintains a cash pool that is available for use by all funds. In addition, cash and investments
are separately held by several of the funds.
Custodial Credit Risk - Deposits
Custodial credit risk is the risk that in the event of a bank failure, the City’s deposits may not be
returned. The City does not have a policy with respect to custodial credit risk for deposit accounts.
The City maintained certain accounts whose balances were fully covered, for other accounts in which
the balance exceeded the $250,000 provided by the Federal Deposit Insurance Corporation (FDIC),
pledged collateral securities were held in the City’s name. As of June 30, 2011, $0 of the City’s bank
balance of $17,673,518 was exposed to custodial credit risk because it was uninsured and
uncollateralized.
At June 30, 2011, the City had the following investments and maturies:
Interest Rate Risk
The City’s investment policy requires that, to the extent possible, the City will attempt to match
investments with anticipated cash requirements. Unless matched to a specific cash flow, the City is not
allowed to directly invest in securities maturing more than three years from the date of purchase.
Credit Risk
Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations.
Maine statutes authorize the City to invest in obligations of the U.S. Treasury and U.S agencies,
repurchase agreements and certain corporate stocks and bonds. In accordance with City policy,
investments in certificates of deposits must be F.D.I.C. insured and any excess of the amounts covered
by insurance must be collateralized in accordance with Title 30-A, Section 5706 of the Maine Revised
Statutes; investments in mutual funds must be “no load” (which means no commission or fee shall be
charged on the purchase or sale), have a constant daily net asset value of $1.00 per share and limit
assets of the fund to U.S. Treasury Obligations or Federal Instrumentality or Agency Securities; the
total investments in stock can not exceed 10% of the portfolio value and no more than 5% can be
invested in any one company.
Custodial Credit Risk - Investments
For investments, custodial credit risk is the risk that, in the event of failure of the counterparty, the City will not be able to recover the value of its investments or collateral securities that are in the
possession of the outside party. As of June 30, 2011, the City had no investments that were subject to
custodial risk. The City’s investment policy states that all security transactions, including collateral for repurchase agreements, entered into by the City shall be conducted on a “delivery vs. payment” basis.
CITY OF BANGOR, MAINE Notes to the Financial Statements, Continued
II - 38
Balance BalanceJune 30, 2010*Increases Decreases June 30, 2011
Governmental activities:
Capital assets, not being depreciated:Land 5,040,548$ -$ -$ 5,040,548$
Construction in process 570,858 4,134,571 167,114 4,538,315
Total capital assets not being depreciated 5,611,406 4,134,571 167,114 9,578,863
Capital assets, being depreciated:
Land improvements 7,975,235 133,600 - 8,108,835
Buildings and improvements 63,265,459 371,390 - 63,636,849
Machinery and equipment 10,402,701 196,014 - 10,598,715
Vehicles 14,337,592 2,255,691 185,069 16,408,214
Infrastructure 21,204,004 167,114 - 21,371,118
Total capital assets being depreciated 117,184,991 3,123,809 185,069 120,123,731
Less accumulated depreciation for:
Land improvements (2,572,579) (359,872) - (2,932,451)
Buildings and improvements (21,700,329) (1,218,668) - (22,918,997)
Machinery and equipment (7,152,131) (640,843) - (7,792,974)
Vehicles (8,263,678) (1,114,958) (159,890) (9,218,746)
Infrastructure (9,879,031) (461,420) - (10,340,451)
Total accumulated depreciation (49,567,748) (3,795,761) (159,890) (53,203,619)
Total capital assets being depreciated, net 67,617,243 (671,952) 25,179 66,920,112 Governmental activities capital assets, net 73,228,649$ 3,462,619$ 192,293$ 76,498,975$
DETAILED NOTES ON ALL FUNDS, CONTINUED
Securities will be held by a third party custodian, or trust department, designated by the Treasurer and
evidenced by safekeeping receipts.
Concentration of Credit Risk
The City’s investment policy states that the City will diversify its investments by security type and
institution. No more than 40% of the City’s total investment portfolio will be invested in any
combination of commercial paper and time certificates of deposit.
B. Property Tax
Property taxes for the current year were levied July 9, 2010, on the assessed value listed as of the
prior April 1 for all real and personal property located in the City. Assessed values are periodically established by the City's Assessor at 100% of assumed market value. Taxes were due in two
installments: September 15, 2010 and March 15, 2011. Interest was charged at 7.00% on all taxes
unpaid as of the due date.
Property taxes levied during the year were recorded as receivables at the time the levy was made.
The receivables collected during the year and in the first sixty days following the end of the fiscal year
have been recorded as revenues. The remaining receivables have been recorded as deferred
revenues. Tax liens are placed on real property within twelve months following the tax commitment
date if taxes are delinquent. The City has the authority to foreclose on property eighteen months after
the filing of the lien if the tax liens and associated costs remain unpaid.
C. Capital Assets
Capital asset activity for the year ended June 30, 2011 was as follows:
CITY OF BANGOR, MAINE Notes to the Financial Statements, Continued
II - 39
Balance Balance
June 30, 2010*Increases Decreases June 30, 2011
Business-type activities:Capital assets, not being depreciated:
Land 3,997,486$ -$ 20,448$ 3,977,038$
Construction in process 7,050,749 4,558,272 2,241,594 9,367,427
Total capital assets not being depreciated 11,048,235 4,558,272 2,262,042 13,344,465
Capital assets, being depreciated:
Land improvements 3,071,032 - - 3,071,032
Buildings and improvements 42,888,107 - 1,404 42,886,703
Machinery and equipment 6,134,835 5,495 26,892 6,113,438 Infrastructure 57,726,469 28,290 - 57,754,759
Airport operational assets 243,608,738 2,537,146 - 246,145,884
Parking structures 11,350,354 - - 11,350,354
Total capital assets being depreciated 364,779,535 2,570,931 28,296 367,322,170
Less accumulated depreciation for:
Land improvements (1,552,046) (71,139) - (1,623,185)
Buildings and improvements (27,639,882) (1,392,364) (1,404) (29,030,842)
Machinery and equipment (4,326,238) (234,932) (26,892) (4,534,278)
Infrastructure (10,564,458) (584,238) - (11,148,696) Airport operational assets (137,118,179) (7,546,961) - (144,665,140)
Parking structures (7,652,802) (276,003) - (7,928,805)
Total accumulated depreciation (188,853,605) (10,105,637) (28,296) (198,930,946)
Total capital assets being depreciated, net 175,925,930 (7,534,706) - 168,391,224 Governmental activities capital assets, net 186,974,165$ (2,976,434)$ 2,262,042$ 181,735,689$
Governmental Activities:
General government 1,297,271$
Public safety 921,225
Health, community services and recreation 131,361
Public building and services 585,652
Education 860,252
Total depreciation expense - governmental activities 3,795,761$
Business-type activities:
Sewer Utility Fund 1,681,940$
Airport Fund 7,546,961
Park Woods 89,124
Parking Fund 276,003
Bass Park Fund 243,962
Municipal Golf Course 83,149
Economic Development Fund 184,498
Total depreciation expense - business-type activities 10,105,637$
DETAILED NOTES ON ALL FUNDS, CONTINUED
* restated, see Other Information, Note H
Depreciation expense was charged to functions/programs of the primary government as follows:
CITY OF BANGOR, MAINE Notes to the Financial Statements, Continued
II - 40
Receivable Payable
General Fund 3,251,585$ -$
Community Development Block Grant - 63,200
Nonmajor Special Revenue Funds 63,200 131,330
Airport - 94,000
Park Woods Fund - 358,100
Bass Park Fund - 2,159,755
Economic Development - 508,400
3,314,785$ 3,314,785$
Transfers to Transfers from
General Fund 1,779,193$ 49,681$
Arena Fund 154,890 -
Nonmajor Special Revenue Funds 40,657 68,713
Capital Projects Fund 14,820 1,258,711
Nonmajor Permanent Funds 25,443 -
Sewer Utility Fund 50,000 -
Nonmajor Proprietary Funds 19,842 707,740
2,084,845$ 2,084,845$
DETAILED NOTES ON ALL FUNDS, CONTINUED
Construction commitments
The government has active construction projects as of June 30, 2011. The projects include
construction of a new arena/meeting complex, reconstruction of runways, construction of additional
infrastructure on the waterfront, and continuation of the combined sewer overflow program. D. Interfund Transactions
Individual fund interfund receivable and payable transactions are described in the Summary of
Significant Accounting Policies Note D. 2. As of June 30, 2011 the balances were as follows:
Individual fund transfers to and from other funds for the fiscal year ended June 30, 2011 are
comprised primarily of transfers from fund balances to fund capital projects and to provide operating
subsidies to certain proprietary funds.
CITY OF BANGOR, MAINE Notes to the Financial Statements, Continued
II - 41
Federal State of
Government Maine Other Total
General Fund 87,637$ 2,574,547$ 161,229$ 2,823,413$
Community Development 560,272 - - 560,272
Nonmajor Special Revenue Funds 63,410 100,462 - 163,872
Capital Projects Fund 123,406 22,965 - 146,371
Proprietary Funds 516,309 31,556 - 547,865
Fiscal year ending Economic
June 30,Airport Development
2012 2,546,864$ 614,294$
2013 2,339,386 559,987
2014 1,285,541 336,193
2015 738,311 337,568
2016 448,318 320,200
Sunsequent to 2016 3,519,074 2,509,422
10,877,494$ 4,677,664$
Economic
Airport Development
Land 565,532$ 2,747,811$
Buildings 22,695,748 3,760,216
Less accumulated depreciation (12,484,009) (1,025,343)
Total 10,777,271$ 5,482,684$
DETAILED NOTES ON ALL FUNDS, CONTINUED
E. Due From Other Governments
Due from other governments is comprised of the following amounts at June 30, 2011:
Of the General Fund’s $2,574,547 due from State of Maine, $1,171,337 represents school grant and State agency billings, $739,085 is due from the Department of Transportation and $268,524 represents
general assistance claims. Amounts due from other communities for tuition reimbursement to Bangor
account for $129,499 of the Due from Other in the General Fund. F. Leases
Operating Leases
The Airport and Economic Development Proprietary Funds are the lessors of various buildings and land parcels under operating leases expiring in various years through 2040 and 2035, respectively.
Minimum future rentals to be received on noncancelable leases as of June 30, 2011 are:
Minimum future rentals do not include contingent rentals, which may be received as stipulated in the
lease contracts. The Airport received $1,404,295 in contingent rentals in fiscal year 2011.
The carrying amounts of the leased assets are as follows:
CITY OF BANGOR, MAINE Notes to the Financial Statements, Continued
II - 42
Capital Proprietary
Projects Fund Fund
Due from bond trustee 174,138$ 495,893$
Deposits - 20,000
Total 174,138$ 515,893$
Bonds and notes payable at June 30, 2010 96,645,996$
Add: principal additions 6,391,000
Less: principal repayments 12,595,993
Bonds and notes payable at June 30, 2011 90,441,003$
DETAILED NOTES ON ALL FUNDS, CONTINUED
G. Other Assets
Other assets are comprised of the following:
H. Deferred/Unearned Revenue
General Fund deferred revenue consists of $2,257,876 in deferred taxes and $47,519 of advance
deposits. Capital Fund deferred revenue of $220,532 consists of advance deposits. Community
Development Block Grant and Other Governmental Funds deferred revenue of $5,026,608 and
$273,623, respectively, represents future revenue equal to loans made pursuant to the Community
Development, Urban Development Action Grants and Economic Incentive Revolving Loan Fund. Under
the terms of these grants, loans made are recognized as an expenditure in the Special Revenue Fund
when they occur. Further, in accordance with regulations governing such funds, the repayments of
such loans are considered program income as received and are available to the recipient for additional
use within the program. Proprietary Funds unearned revenue of $13,340 represents advance deposits.
I. Long-term Debt
General Obligation Bonds
The City issues general obligation bonds to provide funds for the acquisition and construction of major
capital additions. General obligation bonds have been issued for both governmental and business-type
activities. These bonds are reported in the proprietary funds if they are expected to be repaid from
proprietary fund revenues. In addition, general obligation bonds have been issued to refund general
obligation bonds and extinguish an existing retirement liability. General obligation bonds are direct
obligations and pledge the full faith and credit of the government. These bonds generally are issued
as 20-year serial bonds.
The original amount of general obligation bonds issued is $159,530,548. The following is a summary
of general obligation bond and note transactions of the City for the fiscal year ended June 30, 2011:
CITY OF BANGOR, MAINE Notes to the Financial Statements, Continued
II - 43
Fiscal year Interest Business-type Total
Long-term debt of maturity rate City School Activities June 30, 2011
Treatment Plant 2013 7.00% - 7.10%-$ -$ 1,900,000$ 1,900,000$
Combined sewer overflow 2014 2.46%- - 279,600 279,600
Combined sewer overflow 2014 2.45%- - 297,900 297,900
Combined sewer overflow 2017 3.52%- - 1,059,708 1,059,708
Tax increment financing note*2016 4.50%468,620 - - 468,620
Combined sewer overflow 2018 3.03%- - 988,428 988,428
Tax increment financing note*2018 4.50%140,766 - - 140,766
Maine Business Enterprise Park 2018 5.00%- - 120,650 120,650
Public improvements note*2012 4.50%484,866 - - 484,866
Public improvements - 2002 2022 3.50% - 4.75%2,305,900 2,475,000 1,049,100 5,830,000
Pension obligation bonds 2026 3.06% - 6.45%23,872,848 1,520,247 5,096,905 30,490,000
Refunding bonds 2024 3.06% - 3.47%360,317 670,320 1,299,363 2,330,000
Combined sewer overflow 2023 1.94%- - 1,898,746 1,898,746
Public improvements note*2012 2.50% - 4.00%- - 36,097 36,097
Tax increment financing note*2015 2.50% - 4.00%67,254 - - 67,254
Briggs Building note 2023 4.50%- - 945,289 945,289
Refunding/public improvements - 2004 2023 2.50% - 4.80%2,285,000 - - 2,285,000
Combined sewer overflow 2024 1.41%- - 1,958,923 1,958,923
Public improvements - 2005 2024 3.50% - 4.30%1,720,000 - 700,000 2,420,000
Airport building sprinklers 2024 3.25% - 5.00%- - 1,610,000 1,610,000
Chancellor's property note 2025 5.00%- - 1,874,003 1,874,003
Public improvements/refunding 2025 4.00% - 4.20%2,901,922 - 448,078 3,350,000
Combined sewer overflow 2027 1.64%- - 1,650,292 1,650,292
Public improvements - 2007 2027 4.00%2,755,000 - - 2,755,000
Combined sewer overflow 2028 1.81%- - 1,743,771 1,743,771
Public improvements - 2009 2029 2.00% - 4.375%2,790,000 - - 2,790,000
ARRA - CWSRF 2029 0.00%- - 872,018 872,018
ARRA - CWSRF 2030 0.00%- - 488,072 488,072
Public improvements/refunding 2020 2.00% - 3.25%4,346,649 7,204,857 1,363,494 12,915,000
Public improvements/refunding 2021 2.00% - 3.25%2,086,100 - 4,304,900 6,391,000
Total bonds and notes payable 46,585,242$ 11,870,424$ 31,985,337$ 90,441,003$
* Notes aggregating $1,197,603 are held by the City's Airport Fund at fixed, taxable market rates of interest.
Governmental Activities
DETAILED NOTES ON ALL FUNDS, CONTINUED
Bonds and notes payable at June 30, 2011 are comprised of the following:
CITY OF BANGOR, MAINE Notes to the Financial Statements, Continued
II - 44
Fiscal year ending
June 30,Principal Interest Principal Interest
2012 4,167,655$ 2,744,508$ 3,796,204$ 1,055,718$
2013 4,301,432 2,590,167 3,790,926 919,392
2014 4,207,101 2,439,529 2,267,191 832,772
2015 4,265,355 2,283,802 2,143,906 771,026
2016 4,390,321 2,116,157 2,215,830 707,132
2017-2021 19,868,601 7,798,985 10,197,199 2,517,924
2022-2026 16,645,201 3,143,929 6,975,994 878,666
2027-2030 610,000 32,931 598,087 8,272
Total 58,455,666$ 23,150,008$ 31,985,337$ 7,690,902$
Governmental Activities Business-type Activities
DETAILED NOTES ON ALL FUNDS, CONTINUED
Annual debt service requirements to maturity for general obligation bonds and notes payable are as
follows:
The City is subject to the laws of the State of Maine, which limits the amount of long-term debt to 15%
of the state’s assessed valuation of the City. At June 30, 2011, the statutory limit for the City was
$369,997,500. The City’s outstanding long-term debt of $90,441,003 at June 30, 2011 was within the
statutory limit.
Authorized and Unissued
On November 26, 2007, the City Council authorized the issuance of up to $600,000 in general
obligation bonds for the purpose of renovating and rehabilitating property located at 103 Texas
Avenue. As of June 30, 2011, $155,000 remains authorized and unissued. The City expects to issue
the debt within the next twenty four months.
Overlapping Debt
In addition to the bonds and notes payable, the City may be contingently responsible for a
proportionate share of overlapping debt. Overlapping debt is debt issued by a separate entity that
shares the same tax base as the City of Bangor. As of June 30, 2011 the City did not have any overlapping debt obligations.
CITY OF BANGOR, MAINE Notes to the Financial Statements, Continued
II - 45
Balance Balance Due within
June 30, 2010 Additions Reductions June 30, 2011 one year
Governmental activities:
General obligation debt 61,689,447$ 2,086,100$ 5,319,881$ 58,455,666$ 4,167,655$
Accrued compensated absences*2,415,725 1,748,123 1,746,623 2,417,225 1,459,672
Net OPEB obligation*1,519,058 270,525 29,088 1,760,495 -
Long-term obligation for self insurance 1,485,708 630,825 389,953 1,726,580 607,890
Governmental activities
long-term liabilities 67,109,938$ 4,735,573$ 7,485,545$ 64,359,966$ 6,235,217$
Business-type activities:
General obligation debt 34,956,549$ 4,304,900$ 7,276,112$ 31,985,337$ 3,796,204$
Accrued compensated absences 600,049 480,870 461,903 619,016 619,016
Net OPEB obligation 485,034 86,942 9,348 562,628 -
Long-term obligation for self insurance 515,400 62,839 130,839 447,400 184,979
Deferred amount on refunding (4,777) - (4,777) - -
Other 511,199 84 - 511,283 -
Business-type activities
long-term liabilities 37,063,454$ 4,935,635$ 7,873,425$ 34,125,664$ 4,600,199$
DETAILED NOTES ON ALL FUNDS, CONTINUED
Changes in Long-term Liabilities
Long-term liability activity for the year ended June 30, 2011, was as follows:
* - The liquidation of compensated absences and net OPEB obligation is fully covered within the General Fund
CITY OF BANGOR, MAINE Notes to the Financial Statements, Continued
II - 46
As of June 30, 2011, fund balances components consisted of the following:
Nonspendable Restricted Committed Assigned
General Fund:
Advances to other funds 1,900,500$ -$ -$ -$
Inventory and prepaid items 963,770 - - -
PEG capital support - 27,635 - -
Arbitrage - 263,707 - -
Credit reserve - 53,264 - -
Pickering Square Develop Dist - 60,513 - -
School Department
Regular - 140,579 - -
Adult education - 137,283 - -
Reading assessment - 18,864 - -
Special revenue - 206,852 - -
School lunch - 346,552 - -
Trust and agency - 363,378 - -
Cultural Commission - - 19,033 -
Encumbrances - - - 1,389,501
Pooled equipment reserve - - - 267,536
Bus equipment reserve - - - 30,863
Fire equipment reserve - - - 128,348
Self insurance reserve - - - 1,726,579
Improvement reserve - - - 287,131
Cameron Stadium reserve - - - 353,780
Demolition reserve - - - 2,210
Benefit reserve - - - 307,988
Parks & Recreation reserve - - - 10,764
Subtotal 2,864,270 1,618,627 19,033 4,504,700
Community Development Block Grant - 346,605 - -
Arena Fund - - 6,690,287 -
Capital Projects Fund:
Capital project funds - 759 - -
Encumbrances - - - 826,179
Subtotal - 759 - 826,179
Other Governmental Funds:
Nonexpendable trust principal 608,710 - - -
Nonmajor Special Revenue Funds - 1,637,362 - -
Nonmajor Permanent Funds - 410,337 - -
Subtotal 608,710 2,047,699 - -
Total 3,472,980$ 4,013,690$ 6,709,320$ 5,330,879$
DETAILED NOTES ON ALL FUNDS, CONTINUED
J. Fund Balances
CITY OF BANGOR, MAINE Notes to the Financial Statements, Continued
II - 47
Governmental Business-type
Capital assets 129,702,594$ 380,666,635$
Accumulated depreciation (53,203,619) (198,930,946)
Bonds payable (58,455,666) (31,985,337)
Non capital related bonds payable 21,958,813 5,098,283
Unspent bond proceeds 174,138 495,893
Total invested in capital assets net
of related debt 40,176,260$ 155,344,528$
DETAILED NOTES ON ALL FUNDS, CONTINUED
K. Net Assets
Net assets represent the difference between assets and liabilities. Net assets invested in capital assets,
net of related debt consists of capital assets, net of accumulated depreciation, reduced by the
outstanding balance of bonds and capital leases payable and adding back any unspent proceeds. Net assets are reported as restricted when there are limitation imposed on their use either through the
enabling legislations adopted by the City of through external restrictions imposed by creditors, grantors
or laws or regulations of other governments. The City’s net assets invested in capital assets, net of related debt was calculated as follows at June 30, 2011:
OTHER INFORMATION
A. Risk Management
The City is exposed to various risks of loss related to torts, theft of, damage to and destruction of
assets, errors and omissions, injuries to employees, and natural disasters for which the City either
carries commercial insurance or is self–insured. The City currently reports all of its risk management
activities in the General and Proprietary Funds. Claims expenditure, liabilities and reserves are
reported when it is probable that a loss has occurred and the amount of the loss can be reasonably
estimated. These losses include an estimate of claims that have been incurred but not reported.
The City purchases coverage under a number of commercially available insurance policies such as;
commercial general liability, auto, property damage and crime and dishonesty, each with limits and
deductibles deemed prudent given the risks, cost of coverage and the City’s ability to fund certain
types of losses. For those claims covered by commercial insurance, the amount of settlements has not
exceeded the coverage for the years ended June 30, 2011, 2010 and 2009.
The City is self-insured for its workers’ compensation liability. Reserves are actuarially determined
each year to assure funding adequacy. In addition, the City purchases excess workers’ compensation
insurance to limit its financial risk. At June 30, 2011, the amount of self-insurance liabilities was $2,173,980. This liability is the City’s best estimate based on available information.
CITY OF BANGOR, MAINE Notes to the Financial Statements, Continued
II - 48
Workers'All other self-
Compensation insured risks Total
Unpaid claims as of July 1, 2009 1,801,304$ 237,251$ 2,038,555$
Incurred claims 264,678 - 264,678
Payments (728,179) (22,450) (750,629)
Changes in estimates and other adjustments 447,519 985 448,504
Unpaid claims as of July 1, 2010 1,785,322 215,786 2,001,108
Incurred claims 330,368 - 330,368
Payments (520,029) (763) (520,792)
Changes in estimates and other adjustments 362,744 552 363,296
Unpaid claims as of July 1, 2011 1,958,405$ 215,575$ 2,173,980$
OTHER INFORMATION, CONTINUED
Changes in the reported liabilities since July 1, 2009 resulted from the following:
B. Tax Increment Financing Districts
The City has established tax increment financing districts, all of which dedicate a portion of the
incremental increase in real estate and/or personal property tax revenues over staggered twenty year
periods for the following purposes:
B.I.A. Municipal Development District No. 1 – Partially financed $27.5 million dollars of capital
expenditures at manufacturing facilities leased by General Electric Company.
Main Street Municipal Development District – Assisted Penobscot Development Limited Liability
Company in financing the extraordinary costs of acquisition and environmental remediation of the
former Gasworks site on Main Street, ultimately to provide land area necessary for the construction of a 54,000 square foot supermarket in a Community Development project area.
Pickering Square Municipal Development District – Assisted Realty Resources Chartered in a major
redevelopment project that converted the former Freese’s department store building into affordable
housing units.
Hammond Street Courtyard Municipal Development District - Assisted Hammond Street Courtyard LP
with the rehabilitation and reuse of the former Bangor Furniture store and office buildings.
Downtown Municipal Development District – To partially finance in excess of $70 million dollars of
infrastructure improvements within the boundaries of the district.
Penjajawoc Marsh/Mall Area Traffic Infrastructure District – To partially finance traffic infrastructure
improvements in the Bangor Mall area and environmental improvement projects in the Penjajawoc
Marsh/Bangor Mall area.
CITY OF BANGOR, MAINE Notes to the Financial Statements, Continued
II - 49
OTHER INFORMATION, CONTINUED
C. Contingent Liabilities
In February 1998, the City was served Notification of Potential Liability by the Federal Environmental Protection Agency (EPA) in connection with that agency’s efforts to clean up a disposal site. In 2007,
LD 1929 was passed to establish a program to fund the cleanup costs at this site for certain parties,
including municipalities. As such there should be no further costs to the City.
In 2002, the City filed suit against Citizens Communication Company (Citizens), a potentially
responsible party to force cleanup of contamination of the Penobscot River bottom due to the inability
to reach settlement. In July 2007, the City reached a settlement agreement with Citizens, whereby the
City received $7.625 million to be held in escrow and applied to the cost of remediation. A Consent
Decree has been negotiated with the Department of Environmental Protection (DEP) for the
remediation the first phase of which has been completed. The City continues to work with State and
Federal agencies to negotiate an agreement for the remainder of the remediation.
In 1991, the City entered into a consent decree with the Federal Environmental Protection agency
(EPA) in regards to wastewater discharge. The City complied with and completed the projects and
plans as originally identified in the 1991 decree. The EPA has indicated that the City will now need to
undertake additional projects related to long term control and asset management plans, and a capacity
management operations and maintenance program. The City has not yet entered into any agreement
with the EPA, but has begun work on the areas identified to date by the EPA.
The City is a party to various other lawsuits. Although the outcome of these lawsuits is not presently
determinable, it is the opinion of the City’s counsel that resolution of these matters will not have a
material adverse effect on the financial condition of the City.
D. Retirement
The City of Bangor provides retirement pensions for its employees through a number of vehicles, including a defined contribution plan, defined benefit pension plan and social security.
Defined Contribution Plan
Description of the Plan - The City provides pension benefits for certain employees through a 401(a)
defined contribution plan administered by ICMA/RC. In addition, certain full-time employees are
covered through both a 401 (a) and 457 Deferred Compensation Plans (DCP) also administered by
ICMA/RC. In a DCP, benefits depend solely on amounts contributed to the plan plus investment
earnings. Covered employees are eligible to participate and are fully vested from the date of
employment. The authority to establish and amend plan provisions or requirements rests with the City.
Funding Policy – Plan members not covered by employment contracts are required to contribute 6.5%
of their annual covered salary and the City is required to contribute either 8% or 10% depending upon
the employee’s classification. For fiscal year 2011 covered payroll was $14,193,428 and City
contributions were $1,213,193. For those plan members that have employment contracts, the City
contributes at various rates from 10% - 15% of annual earnings. The covered payroll and City
CITY OF BANGOR, MAINE Notes to the Financial Statements, Continued
II - 50
OTHER INFORMATION, CONTINUED
contributions for those employees with employment contracts were $455,489 and $50,295
respectively, in fiscal year 2011. Defined Benefit Pension Plan
Description of the Plan – The City contributes to the Maine Public Employees Retirement consolidated
plan, a cost sharing multiple-employer retirement system established by the Maine State legislature.
The Maine Public Employees Retirement System provides retirement and disability benefits, annual
cost-of-living adjustments, and death benefits to plan members and beneficiaries. The authority to
establish and amend benefit provisions rests with the state legislature. The Maine Public Employees
Retirement System issues a publicly available financial report that includes financial statements and
required supplementary information for the Consolidated Plan. That report may be obtained by writing
to Maine Public Employees Retirement, 46 State House Station, Augusta, Maine 04333-0046 or by
calling 1-800-451-9800.
Funding Policy – Plan members are required to contribute 6.5% of their annual covered salary and the
City is required to contribute an actuarially determined rate. The current rate ranges from 2.80% to
6.50% of annual covered payroll. The contribution rates of plan members and the City are established
and may be amended by the Maine Public Employees Retirement System Board of Trustees. The City’s
contributions to the Maine Public Employees Retirement System Consolidated Plan for the years ended
June 30, 2011, 2010, and 2009 were $794,677, $702,525, and $677,652 respectively, equal to the
required contributions for each year. Teachers’ Group
Description of the Plan
- All school teachers, plus other qualified educators, participate in the Maine
Public Employees Retirement System's teacher group. The teacher’s group is a cost-sharing plan with
a special funding situation, established by the Maine State legislature. The Maine Public Employees Retirement System provides retirement and disability benefits, annual cost-of-living adjustments, and
death benefits to plan members and beneficiaries. The authority to establish and amend benefit
provisions rests with the state legislature. The Maine Public Employees Retirement System issues a
publicly available financial report that includes financial statements and required supplementary
information for the Teacher’s Group. That report may be obtained by writing to Maine Public
Employees Retirement System, 46 State House Station, Augusta, Maine 04333-0046 or by calling 1-
800-451-9800.
Funding Policy – Plan members are required to contribute 7.65% of their compensation to the
retirement system. The same statute requires the State of Maine Department of Education, to
contribute the employer contribution, which amounts to $4,492,555 (17.76%) for fiscal year 2011. This
amount has been reported as an intergovernmental revenue and education expenditure in the GAAP
basis financial statements. There is no contribution required by the school department except for
federally funded teachers, for which they contributed 17.76% of their compensation. This cost is
charged to the applicable grant.
CITY OF BANGOR, MAINE Notes to the Financial Statements, Continued
II - 51
Annual required contribution (ARC)393,200$
Amortization adjustment to ARC (115,897)
Interest on net OPEB obligation 80,164
Annual OPEB cost 357,467$
OTHER INFORMATION, CONTINUED
Deferred Compensation Plan
The City offers its employees a deferred compensation plan created in accordance with Internal
Revenue (IRC) Section 457. The plan permits participating employees to defer a portion of their salary
until future years. The deferred compensation is not available to employees until termination,
retirement, death, or unforeseeable emergency.
Social Security
The City does not have a section 218 agreement to provide full social security coverage to its
employees. The City does provide full social security coverage to part-time, seasonal and temporary
employees under the Omnibus Budget Reconciliation Act of 1990, and Internal Revenue Service
regulations, which became effective July 1, 1991.
E. Other Postemployment Benefits
Governmental Accounting Standards Board (GASB) Statement 45, Accounting and Financial Reporting
by Employers for Postemployment Benefits Other Than Pensions, was implemented, as required, by
the City for the year ended June 30, 2009. Under this pronouncement, it requires that the long-term
cost of retirement health care and obligations for other postemployment benefits (OPEB) be
determined on an actuarial basis and reported similar to pension plans.
Description of the Plan - The City sponsors a single-employer post-retirement benefit plan providing health insurance to retiring employees through CIGNA. CIGNA issues a publicly available financial
report that may be obtained through their website www.cigna.com. Full- time City employees age 50
or older and covered under the active medical plan are eligible to participate. Retirees that are designated in a plan pay 100% of the coverage premium. A Medicare Supplement plan is available for
eligible retirees. For retirees without Medicare, coverage is available without a Medicare offset.
Funding Policy and Annual OPEB Cost - GASB Statement 45 does not mandate the prefunding of
postemployment benefits liability. The City currently plans to fund these benefits on a pay-as-you-go
basis. No assets have been segregated and restricted to provide postemployment benefits. The annual
required contribution (ARC), an actuarial determined rate, represents a level of funding that, if paid on
an ongoing basis, is projected to cover normal cost each year and amortize unfunded actuarial
liabilities over a period not to exceed thirty years.
The following table represents the OPEB costs for the year and the annual required contribution:
CITY OF BANGOR, MAINE Notes to the Financial Statements, Continued
II - 52
June 30, 2009 June 30, 2010 June 30, 2011
Annual OPEB cost 1,138,705$ 1,138,705$ 357,467$ *
City contributions (136,659) (136,659) (38,436)
Increase in net OPEB obligation 1,002,046 1,002,046 319,031
Net OPEB obligation, beginning of year - 1,002,046 2,004,092
Net OPEB obligation, end of year 1,002,046$ 2,004,092$ 2,323,123$
Percentage contributed 12.00%12.00%10.75%
* Information provided by the actuary included changes to the participation assumptions resulting in a large
decrease of the annual OPEB cost.
Governmental Business-type Total
Activities Activities June 30, 2011
Actuarial accrued liability (AAL)3,407,638$ 1,095,160$ 4,502,798$
Actuarial value of plan assets - - -
Unfunded actuarial accrued liability (UAAL)3,407,638$ 1,095,160$ 4,502,798$
Covered payroll 17,369,969$ 5,582,428$ 22,952,397$
UAAL as apercentage of covered payroll 19.62%
OTHER INFORMATION, CONTINUED
Funding Status and Funding Progress – The City’s annual OPEB cost, the net OPEB obligation and the
percentage of annual OPEB cost contributed to the plan for the years ending June 30, 2009, 2010 and 2011 are as follows:
The unfunded actuarial accrued liability as a percentage of covered payroll for June 30, 2011 is as
follows:
Actuarial valuations involve estimates of the value of reported amounts and assumptions about the
probability of events in the future. Amounts determined regarding the funded status of the plan and
the annual required contributions of the employer are subject to continual revision as actual results are
compared to past expectations and new estimates are made about the future. The required schedule
of funding progress presented as required supplementary information provides multiyear trend
information (only three years available) that shows whether the actuarial value of plan assets is
increasing or decreasing over time relative to the actuarial accrued liability for benefits.
Actuarial methods and assumptions – Projections of benefits are based on the substantive plan (the
plan as understood by the employer and plan members) and include the types of benefits in force at
the valuation date and the pattern of sharing benefit costs between the City and plan members at that
point. Actuarial calculations reflect a long-term perspective and employ methods and assumptions that
are designed to reduce short-term volatility in actuarial accrued liabilities and the actuarial value of
plan assets. Significant methods and assumptions were as follows:
Actuarial valuation date 1/1/11
Actuarial cost method Projected unit credit cost method
Amortization method Level dollar
Amortization period 30 years - open
Actuarial assumptions:
Investment rate of return 4.0%
Healthcare cost trend rate 8.7% - 4.0%
CITY OF BANGOR, MAINE Notes to the Financial Statements, Continued
II - 53
Economic
Airport Development
Fund Fund
Beginning cash balance, as previously reported 1,501,766$ 54$
Lease income (116,454) 116,454
Beginning cash balance, as restated 1,385,312$ 116,508$
OTHER INFORMATION, CONTINUED
F. Landfill Closure and Postclosure Care Costs
Closure of the City’s Kittredge Road landfill was completed during the fiscal year ended June 30, 2000.
Potential postclosure costs have been deemed immaterial, and therefore no liability for these amounts
has been accrued. All necessary postclosure costs will be funded from the annual operating budget. G. Subsequent Events
On July 25, 2011 the City Council declared its official intent to issue up to $65,000,000 in general
obligation bonds for the purpose of funding the arena/meeting complex project. The City Council has
identified a portion of the City’s Downtown Tax Increment Financing District proceeds, as well as the
gaming revenue received by the City as the source of repayment for this debt.
On August 8, 2011 the City Council authorized the issuance of up to $2,977,700 in general obligations
bonds for the purpose of funding the City’s annual fleet/equipment replacement, local share of State of
Maine road projects, Penobscot River remediation and Wastewater infrastructure.
On August 25, 2011, the City issued $5,610,000 in general obligation federally taxable direct payment
Qualified School Construction Bonds, under the provisions of the American Recovery and Reinvestment
Act of 2009. The bond proceeds will finance the rehabilitation, reconstruction, repair, upgrading and
equipping of the City’s various school facilities. The bonds were issued at a taxable interest rate of
4.65% for a period of seventeen years. The City will be entitled to receive interest subsidy payments
equal to 4.55%, the applicable tax credit rate on the date of the issuance, from the United States
Department of Treasury for the life of the issue.
On December 12, 2011, the City Council authorized the issuance of up to $5,347,300 in general
obligation bonds to refund outstanding general obligation bonds on a current basis. The final maturity
dates of the refunded general obligation bonds will remain unchanged. This refunding is expected to
result in approximately $500,000 in cumulative interest cost savings over the next 10 years.
H. Restatement
During the current fiscal year, beginning cash balances for the Airport Fund and the Economic
Development Fund were restated. The restatement was due to lease income that had been previously
recorded to the Airport Fund that should have been reported under the Economic Development Fund.
Cash balances for the Airport Fund and Economic Development Fund as of June 30, 2011 have been
restated as follows:
CITY OF BANGOR, MAINE Notes to the Financial Statements, Continued
II - 54
Business-type
Activities
Beginning business-type net capital assets, previously reported 188,358,413$
Asset transfer (1,742,257)
Accumulated depreciation 358,009
Beginning business-type net capital assets, as restated 186,974,165$
Capital Projects
Fund
Fund balance, as previously reported 1,145,945$
Tax increment financing revenue 318,064
Fund balance, as restated 1,464,009$
Economic
Development
Fund
Loan receivable, as previously reported 96,767$
Loan receivable from sale of assets 1,510,000
Loan receivable, as restated 1,606,767$
OTHER INFORMATION, CONTINUED
During the current fiscal year, beginning loan receivable balances for the Economic Development Fund
were restated. The restatement was due to a loan receivable obtained through a previously unrecorded capital asset sale.
Loan receivable balances for the Economic Development Fund as of June 30, 2011 have been restated as follows:
During the current fiscal year it was found that there were several assets within the Economic
Development Fund that were in the incorrect classification type. The change resulted in a beginning
balance reclassification from buildings to land improvements of $897,716.
During the current fiscal year, beginning business-type net capital assets and net assets were restated.
The restatement was due to improper posting of a prior year capital asset transfer from the Airport
Fund to the Economic Development Fund.
Business-type net capital assets balances as of June 30, 2011 have been restated as follows:
During the current fiscal year, beginning fund balance for the Capital Projects Fund was restated. The
restatement was due to prior year unexpended tax increment financing not being properly recorded as
revenue.
Fund balance for the Capital Projects Fund as of June 30, 2011 has been restated as follows:
CITY OF BANGOR, MAINE Notes to the Financial Statements, Continued
II - 55
Governmental Business-type
Activities Activities
Net assets, as previously reported 35,632,310$ 173,025,009$
Asset additions (disposals)181,534 (167,022)
Gain on capital asset sales - 292,773
Net assets, as retated 35,813,844$ 173,150,760$
OTHER INFORMATION, CONTINUED
During 2011, the City discovered an improperly recorded asset transfer between proprietary funds, a
recorded building asset under governmental activities that should have been demolition costs and various capital asset sales resulting in unrecorded gains and losses.
Due to these changes there has been a restatement of beginning net assets on the entity-wide
statement of activities.
Net Assets for governmental activities and the business-type activities as of June 30, 2011 have been
restated as follows:
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II - 56
2009 2010 2011
Actuarial Valuation Date 7/1/2008 7/1/2008 1/1/2011
Governmental activities:
Actuarial value of assets -$ -$ -$
Actuarial accrued liability (AAL)8,488,427 8,488,427 3,407,638
Unfunded actuarial accrued liability (UAAL)8,488,427$ 8,488,427$ 3,407,638$ Funded ratio 0.00%0.00%0.00%
Covered payroll 16,257,319$ 17,224,485$ 17,369,969$
Business-type activities:Actuarial value of assets -$ -$ -$
Actuarial accrued liability (AAL)2,710,336 2,710,336 1,095,160
Unfunded actuarial accrued liability (UAAL)2,710,336$ 2,710,336$ 1,095,160$
Funded ratio 0.00%0.00%0.00%Covered payroll 5,190,927$ 5,439,647$ 5,582,428$
Primary government:
Actuarial value of assets -$ -$ -$ Actuarial accrued liability (AAL)11,198,763 11,198,763 4,502,798
Unfunded actuarial accrued liability (UAAL)11,198,763$ 11,198,763$ 4,502,798$
Funded ratio 0.00%0.00%0.00%
Covered payroll 21,448,246$ 22,664,132$ 22,952,397$
UAAL as a percentage of covered payroll 52.21%49.41%19.62%
Only three years have been presented because 2009 was the year GASB Statement 45 was implemented.
CITY OF BANGOR, MAINE
Required Supplemental Information
Schedule of Funding Progress - Retiree Healthcare Plan
For the Fiscal Year Ended June 30, 2011
Fiscal Year
GENERAL FUND
The General Fund is used to account for resources traditionally associated with the government, which are not required legally or by sound financial management, to be
accounted for in another fund.
II - 57
Schedule A-1
CITY OF BANGOR, MAINE
Balance Sheet
General FundJune 30, 2011
ASSETS
Cash and cash equivalents 13,518,284$
Investments 50,000
Receivables:
Taxes 2,555,470
Accounts (net of allowance of $475,341)1,425,307
Interfund 3,251,585
Intergovernmental 2,823,413
Loans 945,289
Inventory, at cost 912,743
Prepaid items 51,027
Total assets 25,533,118$
LIABILITIES AND FUND BALANCE
Liabilities
Accounts payable 1,111,343$
Accrued wages and benefits payable 5,091,810
Deferred revenue 2,305,395
Total liabilities 8,508,548
Fund balances
Nonspendable 2,864,270
Restricted 1,618,627
Committed 19,033
Assigned 4,504,700
Unassigned 8,017,940
Total fund balance 17,024,570
Total liabilities and fund balance 25,533,118$
II - 58
Schedule A-2
CITY OF BANGOR, MAINE
Schedule of Revenues, Expenditures and Changes in Unassigned
Fund Balance - Budget and Actual - Budgetary Basis
General Fund
For the Fiscal Year Ended June 30, 2011
Balances Variance
Carried
7/1/2010 Budget Actual Surplus Carried
Revenues
Taxes
Real and personal property -$ 48,038,150$ 48,027,330$ (10,820)$ -$
Change in deferred property tax - - (27,992) (27,992) -
Tax increment financing district - (2,308,412) (2,308,412) - -
Payment in lieu of taxes - 115,000 161,880 46,880 -
Excise - 4,428,000 4,515,752 87,752 -
Interest on delinquent taxes - 208,000 209,984 1,984 -
Total taxes - 50,480,738 50,578,542 97,804 -
Intergovernmental
State revenue sharing - 3,443,000 3,670,723 227,723 -
School subsidy - 18,247,234 18,517,665 - 270,431
Other -
municipal - 3,225,854 4,174,848 948,994 -
school - 4,510,488 3,456,485 - (1,054,003)
Total intergovernmental - 29,426,576 29,819,721 1,176,717 (783,572)
Other revenue
Licenses and permits - 652,500 601,202 (51,298) -
Charges for service -
municipal - 8,062,681 8,593,548 530,867 -
school - 4,696,353 5,165,260 - 468,907
Fines, forfeits and penalties - 36,700 39,090 2,390 -
Revenue from use of money and property -
municipal - 656,712 673,313 16,601 -
Total other - 14,104,946 15,072,413 498,560 468,907
Total revenues - 94,012,260 95,470,676 1,773,081 (314,665)
II - 59
Schedule A-2 (con't)
CITY OF BANGOR, MAINE
Schedule of Revenues, Expenditures and Changes in Unassigned
Fund Balance - Budget and Actual - Budgetary Basis
General FundFor the Fiscal Year Ended June 30, 2011
Balances Variance
Carried
7/1/2010 Budget Actual Surplus Carried
Expenditures
General government
Council - 32,518 27,627 4,891 -
Executive - 756,445 750,578 5,867 -
Human resources - 110,077 101,835 8,242 -
City clerk - 393,334 396,050 (2,716) -
Assessing - 440,853 441,939 (1,086) -
Legal - 280,025 279,719 306 -
Finance - 1,622,759 1,565,457 57,302 -
Insurance - 135,000 142,677 (7,677) -
Planning, econ dev, code enforcement - 1,178,378 1,125,348 53,030 -
Total general government - 4,949,389 4,831,230 118,159 -
Public safety
Police - 8,226,797 7,882,779 344,018 -
Fire - 7,732,180 7,935,455 (203,275) -
Total public safety - 15,958,977 15,818,234 140,743 -
Health, community services and recreation
Health and community services - 2,956,805 4,017,766 (1,060,961) -
Parks and recreation - 1,431,010 1,564,487 (133,477) -
Total health, commun. serv and rec.- 4,387,815 5,582,253 (1,194,438) -
Public buildings and services - 10,159,149 10,192,831 (33,682) -
II - 60
Schedule A-2 (con't)
CITY OF BANGOR, MAINE
Schedule of Revenues, Expenditures and Changes in Unassigned
Fund Balance - Budget and Actual - Budgetary Basis
General Fund
For the Fiscal Year Ended June 30, 2011
Balances Variance
Carried
7/1/2010 Budget Actual Surplus Carried
Expenditures, continued
Other agencies
County tax - 2,661,688 2,661,688 - -
Downtown Development District - 52,432 52,432 - -
Public library - 1,477,558 1,477,958 (400) -
Other agencies 64,194 111,051 155,539 672 19,034
Total other agencies 64,194 4,302,729 4,347,617 272 19,034
Education
Regular 3,045,101 42,535,936 41,706,075 - 3,874,962
Adult education 154,187 534,551 514,511 - 174,227
School lunch 244,959 1,302,368 1,300,953 - 246,374
Special revenue 356,590 4,406,371 3,245,897 - 1,517,064
Trust and agency 210,591 1,028,380 1,122,078 - 116,893
Total education 4,011,428 49,807,606 47,889,514 - 5,929,520
Other appropriations
Pensions and other fringe benefits - 1,915,941 1,942,541 (26,600) -
Debt service - 2,596,100 2,640,420 (44,320) -
Tax increment financing payments - 751,655 734,975 16,680 -
Total other appropriations - 5,263,696 5,317,936 (54,240) -
Total expenditures 4,075,622 94,829,361 93,979,615 (1,023,186) 5,948,554
Excess (deficiency) of revenues
over/under expenditures (4,075,622) (817,101) 1,491,061 749,895 5,633,889
II - 61
Schedule A-2 (con't)
CITY OF BANGOR, MAINE
Schedule of Revenues, Expenditures and Changes in Unassigned
Fund Balance - Budget and Actual - Budgetary Basis
General FundFor the Fiscal Year Ended June 30, 2011
Balances Variance
Carried
7/1/2010 Budget Actual Surplus Carried
Other financing sources (uses)
Appropriation from restricted, committed
and assigned fund balances - 1,630,151 272,822 - (1,357,329)
Sale of assets - 4,000 44,563 40,563 -
Contributions - - 260 260 -
Insurance Settlements - 5,200 25,000 19,800 -
Transfers to other funds - (342,500) (414,000) (71,500) -
Transfers from other funds - 31,500 24,500 (7,000) -
Operating transfers - (511,250) (511,250) - -
Total other financing sources (uses)- 817,101 (558,105) (17,877) (1,357,329)
Net change in unassigned fund balance (4,075,622)$ -$ 932,956$ 732,018 4,276,560$
Unassigned fund balance, beginning of year 8,499,692
Changes in fund balance classification in accordance with GASB 54
Amounts required to be shown as nonspendable fund balance
Advance to other funds (250,000)
Inventory and prepaids (963,770)
Unassigned fund balance, end of year 8,017,940$
NONMAJOR GOVERNMENTAL FUNDS
Special Revenue Funds
Special Revenue Funds are used to account for specific revenues that are legally
restricted to expenditures for particular purposes.
Other HUD Funds – This is used to account for 1) federal grants obtained and expended
under the Housing and Community Development Act of 1974, as amended, for the
redevelopment of the downtown commercial core of the City and 2) low interest loans to
businesses within the City of Bangor for establishment, expansion or redevelopment
purposes.
Grant Fund – Accounts for federal and state grants that are legally restricted to
expenditures allowable by the grantor agency.
Dedicated Revenue Funds - Accounts for amounts raised or donated to benefit various governmental programs such as; the Dental Clinic, local parks, City forest and Park
Woods complex.
Other Funds – Accounts for funds held to be used in future periods such as tax financing district repayments and other community funds for capital expenditures relating to the
operation of the area transportation system
Permanent Fund
Permanent funds are used to report resources that are legally restricted to the extent
that only earnings, not principal, may be used for purposes that support the reporting
government’s programs.
II - 62
Schedule B-1
CITY OF BANGOR, MAINE
Combining Balance Sheet
Nonmajor Governmental FundsJune 30, 2011
Nonmajor
Special Nonmajor Total Other
Revenue Permanent Governmental
Funds Funds Funds
ASSETS
Cash and cash equivalents $316,056 -$ 316,056$
Investments - 114,737 114,737
Receivables:
Accounts 140 - 140
Interfund 63,200 - 63,200
Loans /Notes (net of $170,317 allowance) 1,540,567 904,310 2,444,877
Intergovernmental 163,872 - 163,872
Total assets $2,083,835 1,019,047$ 3,102,882$
LIABILITIES AND FUND BALANCES
Liabilities
Accounts payable $40,711 -$ 40,711$
Accrued wages and benefits payable 13,066 - 13,066
Deferred revenue 273,623 - 273,623
Interfund loans payable 131,330 - 131,330
Total liabilities 458,730 - 458,730
Fund balances
Nonspendable - 608,710 608,710
Restricted 1,637,362 410,337 2,047,699
Unassigned (12,257) - (12,257)
Total fund balances 1,625,105 1,019,047 2,644,152
Total liabilities and fund balances $2,083,835 1,019,047$ 3,102,882$
II - 63
Schedule B-2
CITY OF BANGOR, MAINE
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Nonmajor Governmental FundsFor the Fiscal Year Ended June 30, 2011
Nonmajor
Special Nonmajor Total Other
Revenue Permanent Governmental
Funds Funds Funds
Revenues
Taxes $803,933 -$ 803,933$
Intergovernmental 5,314,317 - 5,314,317
Charges for services 1,085,454 - 1,085,454
Program income 26,075 - 26,075
Revenue from use of money and property 135,078 - 135,078
Other revenue 28,741 1,950 30,691
Interest revenue - 59,079 59,079
Total revenues 7,393,598 61,029 7,454,627
Expenditures
Current:
Personnel 1,033,115 - 1,033,115
Payments to beneficiaries 831,175 - 831,175
Other 2,965,248 - 2,965,248
Bus operations 2,344,327 - 2,344,327
Program expenditures - 136,193 136,193
Total expenditures 7,173,865 136,193 7,310,058
Excess (deficiency) of revenues
over (under) expenditures 219,733 (75,164) 144,569
Other financing sources (uses)
Transfer to other funds (40,657) (25,443) (66,100)
Transfer from other funds 68,713 - 68,713
Total other financing sources (uses)28,056 (25,443) 2,613
Net change in fund balances 247,789 (100,607) 147,182
Fund balances, beginning of year 1,377,316 1,119,654 2,496,970
Fund balances, end of year $1,625,105 1,019,047$ 2,644,152$
II - 64
Schedule B-3
CITY OF BANGOR, MAINE
Combining Balance Sheet
Nonmajor Special Revenue Funds
June 30, 2011
Dedicated
Other Grant Revenue
HUD Funds Fund Funds Other Totals
ASSETS
Cash and cash equivalents 127,327$ 83$ -$ 188,646$ 316,056$
Receivables:
Accounts - - - 140 140
Interfund 63,200 - - - 63,200
Loans/Notes (net of $170,317 allowance)273,623 - 796,240 470,704 1,540,567
Intergovernmental - 163,872 - - 163,872
Total assets 464,150$ 163,955$ 796,240$ 659,490$ 2,083,835$
LIABILITIES AND FUND BALANCES
Liabilities
Accounts payable -$ 31,816$ -$ 8,895$ 40,711$
Accrued wages and benefits payable - 13,066 - - 13,066
Deferred revenue 273,623 - - - 273,623
Interfund loans payable - 131,330 - - 131,330
Total liabilities 273,623 176,212 - 8,895 458,730
Fund balances (deficits)
Restricted 190,527 - 796,240 650,595 1,637,362
Unassigned - (12,257) - - (12,257)
Total fund balances 190,527 (12,257) 796,240 650,595 1,625,105
Total liabilities and
fund balances (deficits)464,150$ 163,955$ 796,240$ 659,490$ 2,083,835$
II - 65
Schedule B-4
CITY OF BANGOR, MAINE
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Nonmajor Special Revenue Funds
For the Fiscal Year Ended June 30, 2011
Dedicated
Other Grant Revenue
HUD Funds Fund Funds Other Totals
Revenues
Taxes -$ -$ -$ 803,933$ 803,933$
Intergovernmental - 5,314,317 - - 5,314,317
Charges for services - 1,085,454 - - 1,085,454
Program income 26,075 - - - 26,075
Revenue from use of money and property - - 75,278 59,800 135,078
Contributions - - 2,016 26,725 28,741
Total revenues 26,075 6,399,771 77,294 890,458 7,393,598
Expenditures
Personnel - 1,033,115 - - 1,033,115
Payments to beneficiaries - - 1,592 829,583 831,175
Other - 2,964,598 - 650 2,965,248
Bus operations - 2,344,327 - - 2,344,327
Total expenditures - 6,342,040 1,592 830,233 7,173,865
Excess (deficiency) of revenues
over (under) expenditures 26,075 57,731 75,702 60,225 219,733
Other financing sources (uses)
Transfers to other funds - - (40,657) - (40,657)
Transfers from other funds - - 68,311 402 68,713
Total other financing sources (uses)- - 27,654 402 28,056
Net change in fund balances 26,075 57,731 103,356 60,627 247,789
Fund balances (deficits), beginning of year 164,452 (69,988) 692,884 589,968 1,377,316
Fund balances (deficit), end of year 190,527$ (12,257)$ 796,240$ 650,595$ 1,625,105$
II - 66
Schedule B-5
CITY OF BANGOR, MAINE
Combining Balance Sheet
Nonmajor Permanent FundsJune 30, 2011
Revolving
Other Loan
Funds Funds Totals
ASSETS
Investments $- 114,737$ 114,737$
Loans receivable 877,053 27,257 904,310
Total assets $877,053 141,994$ 1,019,047$
LIABILITIES AND
FUND BALANCES
Liabilities $- -$ -$
Total liabilities $- -$ -$
Fund balances
Nonspendable 466,716 141,994 608,710
Restricted 410,337 - 410,337
Total fund balances 877,053 141,994 1,019,047
Total liabilities and and fund balances $877,053 141,994$ 1,019,047$
II - 67
Schedule B-6
CITY OF BANGOR, MAINE
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Nonmajor Permanent FundsFor the Fiscal Year Ended June 30, 2011
Revolving
Other Loan
Funds Funds Totals
Revenues
Investment income $45,211 13,868$ 59,079$
Lot sales 1,950 - 1,950
Total revenues 47,161 13,868 61,029
Expenditures
Current:
Payments to beneficiaries 132,377 3,000 135,377
Other miscellaneous - 816 816
Total expenditures 132,377 3,816 136,193
Excess (deficiency) of revenues
over (under) expenditures (85,216) 10,052 (75,164)
Other financing uses
Transfer to other funds (25,443) - (25,443)
Transfer from other funds - - -
Total other financing uses (25,443) - (25,443)
Net change in fund balances (110,659) 10,052 (100,607)
Fund balances, beginning of year 987,712 131,942 1,119,654
Fund balances, end of year $877,053 141,994$ 1,019,047$
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ENTERPRISE FUNDS
Enterprise Funds are used to account for operations that are financed and operated in a
manner similar to private business enterprises. The intent of the government is to have
the costs of providing goods or services to the general public financed or recovered
primarily through user charges. The government has decided that periodic
determination of net income is appropriate for accountability purposes.
In addition to the major funds reported in Summary of Significant Accounting Policies,
Note C the City has the following nonmajor enterprise funds:
Park Woods – This fund accounts for the rental of 60 units of surplus housing received
from the federal government pursuant to the McKinney Homeless Assistance Act. The principal source of revenue is rental income.
Parking Fund – This fund accounts for the operation of the City-owned parking lots and the Pickering Square garage. Revenue sources include monthly lease payments for
parking spaces, hourly/daily parking fees, and fines and waiver fees for parking
violations. Certain of these facilities are operated under a private management contract.
Bass Park Fund – This fund accounts for the operation of the Bangor auditorium, Bangor
Civic Center, and Bangor State Fair. Principal sources of revenue are admissions,
concession sales, and rentals. The fund is named after the Bass family, which
bequeathed the property to the City for recreational purposes.
Municipal Golf Course – This fund accounts for the operation of a 27 hole municipal golf
course. Principal revenue sources are season memberships and daily green fees.
Continued on next page
II - 68
Schedule C-1
CITY OF BANGOR, MAINE
Combining Statement of Net Assets
Nonmajor Proprietary Funds
June 30, 2011
Business-type Activities - Enterprise Funds
Bass Municipal Total
Park Parking Park Golf Nonmajor
Woods Fund Fund Course Proprietary Funds
ASSETS
Current assets
Cash and cash equivalents 1,003$ 155,954$ 10,962$ 580,968$ 748,887$
Accounts receivable 3,951 - 70,248 2,000 76,199
Less allowance for uncollectible accounts - - (10,000) - (10,000)
Net accounts receivable 3,951 - 60,248 2,000 66,199
Inventories, at cost - - 17,865 - 17,865
Prepaid items - - 20,813 - 20,813
Total current assets 4,954 155,954 109,888 582,968 853,764
Noncurrent assets
Capital Assets:
Land and improvements 295,025 - 828,921 1,594,732 2,718,678
Buildings and improvements 1,933,061 - 8,741,549 912,607 11,587,217
Machinery and equipment 22,952 - 144,428 316,619 483,999
Parking structures - 11,350,354 - - 11,350,354
2,251,038 11,350,354 9,714,898 2,823,958 26,140,248
Less accumulated depreciation (1,454,442) (7,928,805) (5,077,177) (1,607,367) (16,067,791)
Net capital assets 796,596 3,421,549 4,637,721 1,216,591 10,072,457
Deposits 20,000 - - - 20,000
Total noncurrent assets 816,596 3,421,549 4,637,721 1,216,591 10,092,457
Total assets 821,550 3,577,503 4,747,609 1,799,559 10,946,221
Continued from previous page
II - 69
Schedule C-1 (con't)
CITY OF BANGOR, MAINE
Combining Statement of Net Assets
Nonmajor Proprietary Funds
June 30, 2011
Business-type Activities - Enterprise Funds
Bass Municipal Total
Park Parking Park Golf Nonmajor
Woods Fund Fund Course Proprietary Funds
LIABILITIES
Current liabilities
Accounts payable 30,372 680 38,559 18,860 88,471
Accrued wages and benefits payable 1,729 6,435 12,966 12,627 33,757
Accrued interest - 29,234 6,550 6,571 42,355
Workers' compensation - 3,441 4,569 - 8,010
Unearned revenue - 6,902 6,438 - 13,340
Accrued compensated absences 13,334 15,430 59,424 19,290 107,478
Interfund loans payable 358,100 - 2,159,755 - 2,517,855
General obligation debt payable - 184,652 136,912 32,424 353,988
Total current liabilities 403,535 246,774 2,425,173 89,772 3,165,254
Long-term liabilities
Workers' compensation - 6,559 5,431 - 11,990
General obligation debt payable - 2,098,194 718,141 500,927 3,317,262
Net OPEB obligation 7,324 10,362 34,822 16,875 69,383
Other long-term liabilities 193,061 19,953 - - 213,014
Total long-term liabilities 200,385 2,135,068 758,394 517,802 3,611,649
Total liabilities 603,920 2,381,842 3,183,567 607,574 6,776,903
NET ASSETS
Invested in capital assets, net of related debt 796,596 1,299,285 4,210,916 768,513 7,075,310
Unrestricted (578,966) (103,624) (2,646,874) 423,472 (2,905,992)
Total net assets 217,630$ 1,195,661$ 1,564,042$ 1,191,985$ 4,169,318$
II - 70
Schedule C-2
Bass Municipal Total
Park Parking Park Golf Nonmajor
Woods Fund Fund Course Proprietary Funds
Operating revenues
Charges for services 372,715$ 1,057,710$ 1,276,869$ 643,501$ 3,350,795$
Operating expenses
Operating expenses other than
depreciation and amortization 407,354 807,507 1,791,127 557,164 3,563,152
Depreciation and amortization 89,124 276,003 243,962 83,149 692,238
Total operating expenses 496,478 1,083,510 2,035,089 640,313 4,255,390
Operating income (loss)(123,763) (25,800) (758,220) 3,188 (904,595)
Nonoperating revenue (expenses)
Interest income - - - 1,045 1,045
Interest expense - (123,479) (40,555) (23,998) (188,032)
Total nonoperating revenue (expenses)- (123,479) (40,555) (22,953) (186,987)
Net income (loss) before grants/contributions and transfers (123,763) (149,279) (798,775) (19,765) (1,091,582)
Grants/contributions received for capital assets - - - - -
Transfers to other funds (9,079) - - (10,763) (19,842)
Transfers from other funds 40,657 215,450 451,633 - 707,740
Change in net assets (92,185) 66,171 (347,142) (30,528) (403,684)
Net assets, beginning of year 309,815 1,129,490 1,911,184 1,222,513 4,573,002
Net assets, end of year 217,630$ 1,195,661$ 1,564,042$ 1,191,985$ 4,169,318$
Business-type Activities - Enterprise Funds
Nonmajor Proprietary Funds
For the Fiscal Year Ended June 30, 2011
CITY OF BANGOR, MAINE
Combining Statement of Revenues, Expenses and Changes in Net Assets
Continued on next page
II - 71
Schedule C-3
Bass Municipal Total
Park Parking Park Golf Nonmajor
Woods Fund Fund Course Proprietary Funds
Cash flows from operating activities
Cash received from customers 391,009$ 1,052,072$ 1,264,538$ 641,501$ 3,349,120$
Cash paid to suppliers for goods and services (381,342) (539,999) (1,074,261) (219,988) (2,215,590)
Cash paid to employees for services (42,751) (268,853) (722,914) (332,562) (1,367,080)
Net cash provided by (used in) operating
activities (33,084) 243,220 (532,637) 88,951 (233,550)
Cash flows from noncapital financing activities
Interfund loans (repayments)2,400 - 259,500 - 261,900
Transfers in 40,657 215,450 451,633 - 707,740
Transfers out (9,079) - - (10,763) (19,842)
Net cash provided by (used in) noncapital
financing activities 33,978 215,450 711,133 (10,763) 949,798
Cash flows from capital and related financing activities
Proceeds from general obligation bonds - 1,831,000 - - 1,831,000
Acquisition and construction of capital assets - - - (5,495) (5,495)
Principal paid on general obligation bonds - (2,238,760) (134,231) (32,110) (2,405,101)
Interest paid on general obligation bonds - (120,501) (43,874) (24,411) (188,786)
Net cash provided by (used in) capital and related
financing activities - (528,261) (178,105) (62,016) (768,382)
Cash flows from investing activities
Interest on investments - 84 - 1,045 1,129
Net cash provided by (used in) investing activities - 84 - 1,045 1,129
Net increase (decrease) in cash 894 (69,507) 391 17,217 (51,005)
Cash, beginning of year 109 225,461 10,571 563,751 799,892
Cash, end of year 1,003$ 155,954$ 10,962$ 580,968$ 748,887$
For the Fiscal Year Ended June 30, 2011
Business-type Activities - Enterprise Funds
CITY OF BANGOR, MAINE
Combining Statement of Cash Flows - Nonmajor Proprietary Funds
Continued from previous page
II - 72
Schedule C-3 (con't)
Bass Municipal Total
Park Parking Park Golf Nonmajor
Woods Fund Fund Course Proprietary Funds
Reconciliation of operating income (loss) to net
cash provided by (used in) operating activities
Operating income (loss)(123,763)$ (25,800)$ (758,220)$ 3,188$ (904,595)$
Adjustments to reconcile operating income (loss)
to net cash provided by (used in) operating
activities
Depreciation and amortization 89,124 276,003 243,962 83,149 692,238
Changes in assets and liabilities:
(Increase) decrease in accounts receivable 18,294 279 (3,956) (2,000) 12,617
(Increase) decrease in inventories - - 240 - 240
(Increase) decrease in prepaid items - - (7,496) - (7,496)
Increase (decrease) in accounts payable (15,744) (1,072) (105) 3,753 (13,168)
Increase (decrease) in unearned revenue - (5,917) (8,375) - (14,292)
Increase (decrease) in other liabilities (995) (273) 1,313 861 906
Total adjustments 90,679 269,020 225,583 85,763 671,045
Net cash provided by (used in) operating activities (33,084)$ 243,220$ (532,637)$ 88,951$ (233,550)$
Business-type Activities - Enterprise Funds
CITY OF BANGOR, MAINE
Combining Statement of Cash Flows - Nonmajor Proprietary Funds
For the Fiscal Year Ended June 30, 2011
II - 73
Schedule C-4
CITY OF BANGOR, MAINE
Schedule of Revenues, Expenditures and Encumbrances
Budget and Actual - Budgetary Basis
Sewer Utility Fund - Enterprise FundFor the Fiscal Year Ended June 30, 2011
Variance
Positive
Budget Actual (Negative)
Revenues
Charges for services 7,509,650$ 7,285,986$ (223,664)$
Interest and other revenue 1,000 57,504 56,504
Total revenues 7,510,650 7,343,490 (167,160)
Expenditures and encumbrances
Salaries 1,175,382 1,146,874 28,508
Fringe benefits 327,397 290,471 36,926
Supplies and materials 1,280,537 1,098,722 181,815
Contractual services 781,103 907,079 (125,976)
Interfund charges 423,181 406,621 16,560
Miscellaneous 22,870 19,925 2,945
Debt service 3,131,831 3,128,755 3,076
Depreciation 1,655,556 1,702,695 (47,139)
Outlay 22,250 44,661 (22,411)
Total expenditures and encumbrances 8,820,107 8,745,803 74,304
Excess (deficiency) of revenues over/underexpenditures and encumbrances (1,309,457)$ (1,402,313)$ (92,856)$
II - 74
Schedule C-5
CITY OF BANGOR, MAINE
Schedule of Revenues, Expenditures and Encumbrances
Budget and Actual - Budgetary Basis
Airport Fund - Enterprise FundFor the Fiscal Year Ended June 30, 2011
Variance
Positive
Budget Actual (Negative)
Revenues
Charges for services 13,596,941$ 13,077,529$ (519,412)$
Interest and other revenue 856,916 687,015 (169,901)
Total revenues 14,453,857 13,764,544 (689,313)
Expenditures and encumbrances
Salaries 5,572,119 5,490,171 81,948
Fringe benefits 1,220,521 1,304,864 (84,343)
Supplies and materials 2,407,571 2,150,545 257,026
Contractual services 2,541,913 2,492,150 49,763
Interfund charges 729,104 671,423 57,681
Miscellaneous 254,398 282,870 (28,472)
Debt service 1,021,317 1,021,316 1
Depreciation 7,300,000 7,546,961 (246,961)
Outlay 508,000 58,052 449,948
Credits - - -
Total expenditures and encumbrances 21,554,943 21,018,352 536,591
Excess (deficiency) of revenues over/underexpenditures and encumbrances (7,101,086)$ (7,253,808)$ (152,722)$
II - 75
Schedule C-6
CITY OF BANGOR, MAINE
Schedule of Revenues, Expenditures and Encumbrances
Budget and Actual - Budgetary Basis
Park Woods - Enterprise FundFor the Fiscal Year Ended June 30, 2011
Variance
Positive
Budget Actual (Negative)
Revenues
Charges for services 378,000$ 372,715$ (5,285)$
Interest and other revenue 40,657 40,657 -
Total revenues 418,657 413,372 (5,285)
Expenditures and encumbrances
Salaries 67,623 35,209 32,414
Fringe benefits 17,278 8,369 8,909
Supplies and materials 146,250 174,107 (27,857)
Contractual services 178,666 184,327 (5,661)
Interfund charges 740 191 549
Miscellaneous 8,100 6,972 1,128
Depreciation 89,123 89,124 (1)
Outlay - - -
Total expenditures and encumbrances 507,780 498,299 9,481
Excess (deficiency) of revenues over/underexpenditures and encumbrances (89,123)$ (84,927)$ 4,196$
II - 76
Schedule C-7
CITY OF BANGOR, MAINE
Schedule of Revenues, Expenditures and Encumbrances
Budget and Actual - Budgetary Basis
Parking Fund - Enterprise FundFor the Fiscal Year Ended June 30, 2011
Variance
Positive
Budget Actual (Negative)
Revenues
Charges for services 1,096,992$ 1,057,556$ (39,436)$
Operating transfer 240,426 215,450 (24,976)
Interest and other revenue - - -
Total revenues 1,337,418 1,273,006 (64,412)
Expenditures and encumbrances
Salaries 218,428 220,510 (2,082)
Fringe benefits 47,192 46,920 272
Supplies and materials 7,000 3,300 3,700
Contractual services 381,435 368,374 13,061
Interfund charges 113,437 167,252 (53,815)
Debt service 569,925 528,261 41,664
Depreciation 478,381 276,003 202,378
Outlay - - -
Total expenditures and encumbrances 1,815,798 1,610,620 205,178
Excess (deficiency) of revenues over/underexpenditures and encumbrances (478,380)$ (337,614)$ 140,766$
II - 77
Schedule C-8
CITY OF BANGOR, MAINE
Schedule of Revenues, Expenditures and Encumbrances
Budget and Actual - Budgetary Basis
Bass Park Fund - Enterprise Fund
For the Fiscal Year Ended June 30, 2011
Variance
Positive
Budget Actual (Negative)
Revenues
Charges for services 1,422,100$ 1,276,869$ (145,231)$
Operating transfer 453,190 451,633 (1,557)
Interest and other revenue - - -
Total revenues 1,875,290 1,728,502 (146,788)
Expenditures and encumbrances
Salaries 623,039 579,336 43,703
Fringe benefits 137,901 134,049 3,852
Supplies and materials 394,960 459,018 (64,058)
Contractual services 343,620 415,231 (71,611)
Interfund charges 151,100 154,504 (3,404)
Miscellaneous 50,000 52,850 (2,850)
Debt service 174,670 178,104 (3,434)
Depreciation 59,299 243,962 (184,663)
Credits - (10,000) 10,000
Total expenditures and encumbrances 1,934,589 2,207,054 (272,465)
Excess (deficiency) of revenues over/under
expenditures and encumbrances (59,299)$ (478,552)$ (419,253)$
II - 78
Schedule C-9
CITY OF BANGOR, MAINE
Schedule of Revenues, Expenditures and Encumbrances
Budget and Actual - Budgetary Basis
Municipal Golf Course - Enterprise Fund
For the Fiscal Year Ended June 30, 2011
Variance
Positive
Budget Actual (Negative)
Revenues
Charges for services 624,000$ 643,501$ 19,501$
Interest and other revenue 2,000 1,045 (955)
Total revenues 626,000 644,546 18,546
Expenditures and encumbrances
Salaries 294,042 290,991 3,051
Fringe benefits 42,294 39,794 2,500
Supplies and materials 87,550 94,085 (6,535)
Contractual services 73,700 68,867 4,833
Interfund charges 59,892 68,038 (8,146)
Debt service 56,522 56,521 1
Depreciation 115,300 83,149 32,151
Outlay 12,000 5,495 6,505
Total expenditures and encumbrances 741,300 706,940 34,360
Excess (deficiency) of revenues over/under
expenditures and encumbrances (115,300)$ (62,394)$ 52,906$
II - 79
Schedule C-10
CITY OF BANGOR, MAINE
Schedule of Revenues, Expenditures and Encumbrances
Budget and Actual - Budgetary Basis
Economic Development Fund - Enterprise Fund
For the Fiscal Year Ended June 30, 2011
Variance
Positive
Budget Actual (Negative)
Revenues
Charges for services 456,485$ 432,094$ (24,391)$
Interest and other revenue 250,607 268,835 18,228
Total revenues 707,092 700,929 (6,163)
Expenditures and encumbrances
Supplies and materials 22,300 22,747 (447)
Contractual services 205,815 158,437 47,378
Interfund charges - - -
Miscellaneous 2,360 25,945 (23,585)
Debt service 396,206 396,206 -
Depreciation 205,898 184,498 21,400
Outlay 80,411 - 80,411
Total expenditures and encumbrances 912,990 787,833 125,157
Excess (deficiency) of revenues over/under
expenditures and encumbrances (205,898)$ (86,904)$ 118,994$
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FIDUCIARY FUNDS
Fiduciary Funds are used to report assets held in a trustee or agency capacity for others.
Agency Funds – Agency Funds are used to account for situations where the City’s role is
purely custodial, such as the receipt, temporary investment, and remittance of fiduciary
resources to individuals, private organizations, or other governments.
II - 80
Schedule D-1
CITY OF BANGOR, MAINE
Statement of Change in Assets and Liabilities
Agency Fund
For the Fiscal Year Ended June 30, 2011
Balance Balance
July 1, 2010 Additions Deletions June 30, 2011
ASSETS
Cash:
Bangor Area Stormwater Group 5,395$ 41,779$ 39,464$ 7,710$
School Activity Funds 91,049 235,851 221,733 105,167
Total assets 96,444$ 277,630$ 261,197$ 112,877$
LIABILITIES
Funds held for others:
Bangor Area Stormwater Group 5,395$ 41,779$ 39,464$ 7,710$
School Activity Funds 91,049 235,851 221,733 105,167
Total liabilities 96,444$ 277,630$ 261,197$ 112,877$
CAPITAL ASSETS USED
IN THE OPERATION
OF GOVERNMENTAL FUNDS
II - 81
Schedule E-1
CITY OF BANGOR, MAINE
Capital Assets Used in the Operation of Governmental Funds
(net of accumulated depreciation)
Schedule of Changes by Function and Activity
For the Fiscal Year Ended June 30, 2011
Balance Balance
Function and Activity 2010*Additions Deletions 2011
General government
BAT community connector 1,131,507$ 1,857,030$ 274,923$ 2,713,614$
Central service 17,307 - 3,846 13,461
City clerk 14,047 - 6,587 7,460
City hall 574,993 - 16,078 558,915
Community and economic development 9,116,824 732,796 302,592 9,547,028
Engineering 45,804 - 6,921 38,883
Information services 127,162 - 32,602 94,560
Motor pool 3,901,727 143,869 604,374 3,441,222
Other - unclassified 401,270 - 74,526 326,744
Total general government 15,330,641 2,733,695 1,322,449 16,741,887
Public safety
Fire 5,997,830 247,205 535,481 5,709,554
Police 10,878,463 107,222 385,744 10,599,941
Total public safety 16,876,293 354,427 921,225 16,309,495
Health, community services and recreation
Parks and recreation 2,269,465 49,150 131,361 2,187,254
Total health, community services and recreation 2,269,465 49,150 131,361 2,187,254
Public building and services
Public works 12,785,351 494,463 752,767 12,527,047
Total public buildings and services 12,785,351 494,463 752,767 12,527,047
Education 25,966,899 529,990 860,252 25,636,637
Arena Fund - 3,096,655 - 3,096,655
Total governmental fund capital assets 73,228,649$ 7,258,380$ 3,988,054$ 76,498,975$
* Restated see Other Information Note H
OTHER INFORMATION
II - 82
Schedule F-1
CITY OF BANGOR, MAINE
Assessed Valuation, Commitment and Collections
For the Fiscal Year Ended June 30, 2011
VALUATION
Land and buildings 2,261,383,800$
Land and buildings - Homestead exemption 53,990,200
Personal property 256,321,000
Personal property - BETE exemption 33,584,320
Total valuation 2,605,279,320$
COMMITMENT
Real estate, personal property (excludes Homestead and BETE exemptions)2,517,704,800$
Tax rate 0.01920
Total commitment 48,339,932
ADD
Supplemental taxes committed 22,714
48,362,646
LESS
Collections 2011 46,857,606
Abatements 168,932
2011 taxes receivable at June 30, 2011 1,336,108$
II - 83
Schedule F-2
CITY OF BANGOR, MAINE
General Fund Unassigned Fund Balance Sufficiency Calculation
For the Fiscal Year Ended June 30, 2011
It is the policy of the City to maintain a General Fund unassigned fund balance approximately
8.33% of operating expenditures. The following table sets forth the calculation as to the
sufficiency of the June 30, 2011 General Fund unassigned fund balance.
General Fund expenditures/uses ( Schedule A-2)
General government 4,831,230$
Public safety 15,818,234
Health, community services and recreation 5,582,253
Public buildings and services 10,192,831
Other agencies 4,347,617
Education 47,889,514
Other appropriations 5,317,936
Other uses, gross*925,250
Gross expenditures and uses 94,904,865
General Fund debt service 6,890,918
Net expenditures and uses 88,013,947$
Indicated unassigned fund balance @ 8.33%7,331,562$
Actual unassigned fund balance (Schedule A-2)8,017,940$
Actual unassigned fund balance as a percentage
of net expenditures and uses 9.11%
Over (under) funded status 686,378$
* excludes amounts appropriated from unassigned fund balance
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STATISTICAL SECTION
This part of the City of Bangor’s comprehensive annual financial report presents
detailed information as a context for understanding what the information in the
financial statements, note disclosures and required supplementary information
says about the government’s overall financial health.
Page
Financial Trends III - 1
The schedules contain trend information to help the reader
understand how the City’s financial performance and well-being
have changed over time.
Revenue Capacity III - 8
These schedules contain information to help the reader assess the
City’s most significant local revenue source, the property tax.
Debt Capacity III - 12
These schedules present information to help the reader assess the
affordability of the City’s current levels of outstanding debt and the
ability to issue additional debt in the future.
Demographic and Economic Information III - 16
These schedules offer demographic and economic indicators to help
the reader understand the environment within which the City’s
financial activities take place.
Operating Information III - 18
These schedules contain service and infrastructure data to help the
reader understand how the information in the City’s financial report
relates to the services the City provides and the activities it
performs.
III - 1
Table 1
2011
Governmental activities:
Invested in capital assets, net of related debt 40,176,260$
Restricted 1,019,806
Unrestricted 262,217
Total governmental activities net assets 41,458,283
Business-type activities:
Invested in capital assets, net of related debt 155,344,528
Restricted -
Unrestricted 15,549,352
Total business-type activities net assets 170,893,880
Primary government:
Invested in capital assets, net of related debt 195,520,788
Restricted 1,019,806
Unrestricted 15,811,569
Total primary government net assets 212,352,163$
Only one year has been presented because 2011 was the year GASB Statement No. 54 was implemented.
(accrual basis of accounting)Last Ten Fiscal Years
Net Assets by Component
CITY OF BANGOR, MAINE
Continued on next page
III - 2
Table 2
Fiscal Year
2003 2004 2005 2006 2007 2008 2009 2010 2011
Expenses
Governmental activities:
General government 6,060,687$ 6,487,572$ 6,435,386$ 6,947,106$ 7,052,860$ 8,744,549$ 7,868,247$ 8,279,943$ 9,223,718$
Public safety 11,114,804 12,066,567 12,478,326 12,890,750 13,756,962 14,945,855 15,671,645 16,898,374 17,018,427
Health, community services and recreation 3,340,989 3,606,827 4,000,249 7,301,546 7,348,875 8,413,205 9,168,870 9,331,784 9,523,225
Public services**7,050,085 7,360,360 7,609,989 11,167,397 11,544,128 10,501,253 11,812,548 16,380,337 12,413,601
Other agencies 3,322,395 3,273,003 3,514,658 3,610,935 3,787,970 4,829,547 4,580,661 4,658,904 4,479,888
Education 40,828,756 40,279,055 42,659,395 45,522,795 46,106,647 47,537,197 54,294,824 52,763,860 50,986,350
Unclassified 2,044,069 389,598 65,639 947,025 1,136 - - - -
Restricted grants*6,551,455 6,857,039 7,326,307 - - - - - -
Arena development - - - - 417,030 41,091 51,332 39,075 61,334
Community development*- - - 2,419,594 1,865,026 2,156,241 912,992 1,506,038 1,542,975
Waterfront*- - - 990,961 399,015 1,754,281 9,252,263 79,911 1,439,065
Public transportation*- - - 1,798,968 1,841,516 2,118,374 3,042,434 2,792,904 1,701,112
Tax increment financing*- - - 1,092,770 1,101,078 1,066,192 1,114,112 1,630,081 1,383,662
Interest on debt 740,077 3,083,447 3,166,250 3,098,248 1,952,612 3,206,764 2,651,599 2,555,839 2,151,172
Capital maintenance expenses*1,824,489 2,666,118 1,674,034 - - - - - -
Total governmental activities expenses 82,877,806 86,069,586 88,930,233 97,788,095 97,174,855 105,314,549 120,421,527 116,917,050 111,924,529
Business-type activities:
Sewer Utility 5,744,275 5,751,710 5,859,588 5,818,127 6,052,420 6,052,419 6,197,277 6,253,436 6,202,202
Airport 14,489,128 15,060,963 16,368,681 16,947,056 18,645,140 19,641,953 19,934,243 20,532,553 20,458,552
Park Woods 449,873 531,986 598,854 540,207 678,867 678,867 590,250 529,610 496,478
Parking 1,370,737 1,431,983 1,425,508 1,322,138 1,438,125 1,438,125 1,374,909 1,402,922 1,206,989
Bass Park 1,944,718 1,935,653 1,889,215 1,918,111 1,993,205 1,993,205 1,851,914 1,923,073 2,075,644
Municipal Golf Course 575,408 626,739 592,323 647,499 695,969 695,969 745,339 733,380 664,311
Economic Development 271,047 338,795 397,881 484,264 695,851 695,851 712,195 634,764 618,980
Total business-type activities expenses 24,845,186 25,677,829 27,132,050 27,677,402 30,199,577 31,196,389 31,406,127 32,009,738 31,723,156
Total primary government expenses 107,722,992$ 111,747,415$ 116,062,283$ 125,465,497$ 127,374,432$ 136,510,938$ 151,827,654$ 148,926,788$ 143,647,685$
Only nine years have been presented because 2003 was the year GASB Statement No. 34 was implemented.
* - Amounts previously reported as restricted grants and capital maintenance expenses have been classified
into new functions beginning in 2006.
** - Amounts previously reported as infrastructure have been reclassified as public services to conform with current year presentation.
(accrual basis of accounting)Last Ten Fiscal Years
Changes in Net Assets
CITY OF BANGOR, MAINE
Continued on next page
III - 3
Table 2 (con't)
Fiscal Year
2003 2004 2005 2006 2007 2008 2009 2010 2011
Program Revenues
Governmental activities:
Charges for services
General government 934,540$ 1,103,382$ 1,447,058$ 1,672,854$ 2,334,040$ 2,282,374$ 1,869,711$ 2,386,637$ 2,070,189$
Public safety 1,446,942 1,923,804 1,908,000 2,471,220 2,182,680 2,439,831 3,010,167 2,401,930 3,289,153
Health, community services and recreation 647,709 624,778 674,364 756,207 681,583 771,254 768,450 836,689 928,307
Public services 3,043,886 3,537,702 3,766,334 4,076,981 3,871,412 4,127,341 3,807,886 3,954,116 3,922,847
Other agencies - - - - - 22,243 22,068 - 20,248
Education 3,742,385 3,857,798 4,549,286 4,561,352 4,408,431 4,539,787 4,386,457 4,533,041 5,165,261
Unclassified 26,830 19,719 20,036 859,682 61,128 - - - -
Restricted grants*5,392,472 1,368,366 1,079,690 - - - - - -
Arena Development - - - - 1,630,360 1,689,657 2,205,771 2,380,158 2,331,584
Community development - - - 672,459 658,141 297,394 301,019 332,295 323,494
Public transportation - - - 536,491 659,960 809,531 944,804 923,433 1,025,080
Tax increment financing - - - - - - 1,711 - -
Operating grants and contributions 21,566,478 24,743,028 25,986,614 29,577,430 30,534,706 41,370,518 34,155,649 35,683,710 35,604,940
Capital grants and contributions 3,814,705 2,098,577 4,117,072 3,788,485 2,604,652 2,119,150 2,068,478 6,578,917 4,935,614
Total governmental activities program revenues 40,615,947 39,277,154 43,548,454 48,973,161 49,627,093 60,469,080 53,542,171 60,010,926 59,616,717
Business-type activities:
Charges for services
Sewer Utility 6,569,790 6,281,870 5,970,615 6,206,605 6,663,408 6,745,112 7,537,879 7,288,499 7,340,935
Airport 9,291,513 11,398,518 11,527,061 12,074,504 13,555,003 14,475,879 13,953,287 13,767,394 13,080,217
Park Woods 283,052 279,588 310,389 287,452 340,494 340,494 369,478 371,832 372,715
Parking 807,645 892,820 943,990 963,697 1,001,697 1,001,697 997,111 1,050,579 1,057,710
Bass Park 1,362,054 1,253,421 1,238,707 1,460,931 1,426,599 1,426,599 1,253,236 1,382,947 1,276,869
Municipal Golf Course 623,233 595,852 586,956 604,365 655,834 655,834 608,930 658,053 643,501
Economic Development 388,165 316,062 433,694 391,658 422,716 422,716 569,549 507,867 585,785
Capital grants and contributions 11,274,222 3,376,637 7,749,367 2,581,874 4,377,242 3,426,732 4,113,557 8,684,860 3,717,755
Total business-type activities program revenues 30,599,674 24,394,768 28,760,779 24,571,086 28,442,993 28,495,063 29,403,027 33,712,031 28,075,487
Total primary government program revenues 71,215,621$ 63,671,922$ 72,309,233$ 73,544,247$ 78,070,086$ 88,964,143$ 82,945,198$ 93,722,957$ 87,692,204$
Only nine years have been presented because 2003 was the year GASB Statement No. 34 was implemented.
* - Amounts previously reported as restricted grants have been classified into new functions beginning in 2006.
(accrual basis of accounting)Last Ten Fiscal Years
Changes in Net Assets
CITY OF BANGOR, MAINE
Continued from previous page
III - 4
Table 2 (con't)
Fiscal Year
2003 2004 2005 2006 2007 2008 2009 2010 2011
Net (expense)/revenue
Governmental activities (42,261,859)$ (46,792,432)$ (45,381,779)$ (48,814,934)$ (47,547,762)$ (44,845,469)$ (66,879,356)$ (56,906,124)$ (52,307,812)$
Business-type activities 5,754,488 (1,283,061) 1,628,729 (3,106,316) (1,756,584) (2,701,326) (2,003,100) 1,702,293 (3,647,669)
Total primary government expense (36,507,371) (48,075,493) (43,753,050) (51,921,250) (49,304,346) (47,546,795) (68,882,456) (55,203,831) (55,955,481)
General revenues and other changes in net assets
Governmental activities:
Property taxes 37,624,392 39,936,976 40,302,810 40,666,758 41,702,775 43,775,938 46,977,792 48,182,455 48,027,330
Payment in lieu of taxes 113,575 135,000 186,500 160,457 145,000 122,510 141,595 117,770 161,879
Excise taxes 4,091,505 4,306,055 4,358,409 4,752,852 4,668,614 4,641,320 4,752,005 4,694,936 4,515,752
Franchise taxes 233,874 225,224 265,598 274,986 296,566 300,768 322,526 348,163 367,672
Unrestricted grants and contributions 4,059,770 4,512,720 4,487,931 4,773,082 4,968,217 5,520,774 5,260,439 4,999,567 4,859,811
Unrestricted investment earnings 377,113 296,857 519,225 699,417 1,183,796 1,274,939 874,824 673,295 565,326
Indirect cost charges 557,165 483,439 472,056 - - - - - -
Miscellaneous 598,515 131,733 8,353 32,550 260,733 161,439 93,967 135,849 92,379
Transfers (798,618) (948,416) (837,806) (861,290) (871,864) (539,088) (739,179) 761,103 (637,898)
Total governmental activities 46,857,291 49,079,588 49,763,076 50,498,812 52,353,837 55,258,600 57,683,969 59,913,138 57,952,251
Business-type activities:
Unrestricted investment earnings 1,097,155 206,665 895,064 635,454 1,346,799 1,326,787 1,025,098 1,035,753 752,891
Transfers 798,618 948,416 837,806 861,290 539,088 539,088 739,179 (761,103) 637,898
Total business-type activities 1,895,773 1,155,081 1,732,870 1,496,744 1,885,887 1,865,875 1,764,277 274,650 1,390,789
Total primary government 48,753,064 50,234,669 51,495,946 51,995,556 54,239,724 57,124,475 59,448,246 60,187,788 59,343,040
Change in net assets
Governmental activities 4,595,432 2,287,156 4,381,297 1,683,878 4,806,075 10,413,131 (9,195,387) 3,007,014 5,644,439
Business-type activities 7,650,261 (127,980) 3,361,599 (1,609,572) 129,303 (835,451) (238,823) 1,976,943 (2,256,880)
Total primary government 12,245,693$ 2,159,176$ 7,742,896$ 74,306$ 4,935,378$ 9,577,680$ (9,434,210)$ 4,983,957$ 3,387,559$
Only nine years have been presented because 2003 was the year GASB Statement No. 34 was implemented.
Changes in Net Assets
CITY OF BANGOR, MAINE
(accrual basis of accounting)
Last Ten Fiscal Years
III - 5
Table 3
Fiscal Year
2003 2004 2005 2006 2007 2008 2009 2010 2011
Tax Revenues
Property taxes 37,624,392$ 39,936,976$ 40,302,810$ 40,666,758$ 41,702,775$ 43,775,938$ 46,977,792$ 48,182,455$ 48,027,330$
Excise taxes 4,091,505 4,306,055 4,358,409 4,752,852 4,668,614 4,641,320 4,752,005 4,694,936 4,515,752
Franchise taxes 233,874 225,224 265,598 274,986 296,566 300,768 322,526 348,163 367,672
Total tax revenues 41,949,771$ 44,468,255$ 44,926,817$ 45,694,596$ 46,667,955$ 48,718,026$ 52,052,323$ 53,225,554$ 52,910,754$
Only nine years have been presented because 2003 was the year GASB Statement No. 34 was implemented.
CITY OF BANGOR, MAINE
Governmental Activities Tax Revenues By Source
Last Ten Fiscal Years
(accrual basis of accounting)
III - 6
Table 4
2011
General Fund:
Nonspendable
Advances to other funds 1,900,500$
Inventory and prepaid items 963,770
Restricted
Education purposes 1,213,508
Municipal purposes 405,119
Committed - municipal purposes 19,033
Assigned
Encumbrances - education and municipal 1,389,501
Municipal purposes 3,115,199
Unassigned 8,017,940
Total general fund 17,024,570$
All other governmental funds:
Nonspendable
Permanent Fund Principal 608,710$
Restricted
Community Development Block Grant 346,605
Penobscot River 759
Nonmajor Special Revenue Funds 1,637,362
Nonmajor Permanent Funds 410,337
Committed
Arena Fund 6,690,287
Assigned
Capital Project Fund Encumbrances 826,179
Unassigned
Capital Project Fund (537)
Nonmajor Special Revenue Funds (12,257)
Total all other governmental funds 10,507,445$
Only one year has been reported because 2011 was the year GASB 54 was implemented.
(modified accrual basis of accounting)Last Ten Fiscal Years
Fund Balances of Governmental Funds
CITY OF BANGOR, MAINE
III - 7
Table 5
Fiscal Year
2003 2004 2005 2006 2007 2008 2009 2010 2011
Revenues:
Taxes:
Property taxes 39,261,141$ 39,774,952$ 40,586,129$ 41,101,785$ 42,145,912$ 43,767,914$ 47,113,576$ 48,284,733$ 48,371,202$
Excise taxes 4,091,505 4,306,055 4,358,409 4,752,852 4,668,614 4,641,320 4,752,005 4,694,936 4,515,752
Total tax revenues 43,352,646 44,081,007 44,944,538 45,854,637 46,814,526 48,409,234 51,865,581 52,979,669 52,886,954
Intergovernmental 30,627,927 31,617,135 34,484,238 37,714,682 37,774,922 41,345,956 41,123,520 46,211,718 45,304,160
Licenses and permits 409,842 374,499 655,745 538,534 982,879 956,965 644,621 633,339 601,202
Charges for services 10,151,637 11,035,587 12,160,573 12,927,989 12,598,776 13,283,275 13,449,587 13,655,764 15,226,575
Program income 583,569 463,066 409,153 663,269 657,987 296,325 288,677 329,800 314,203
Revenue from money and property 1,420,582 1,162,796 1,255,959 2,349,812 3,621,988 3,812,356 3,836,654 3,864,984 3,473,975
Other 1,612,518 142,311 168,452 526,360 279,261 7,691,463 428,220 1,108,213 279,426
Total revenues 88,158,721 88,876,401 94,078,658 100,575,283 102,730,339 115,795,574 111,636,860 118,783,487 118,086,495
Expenditures:
General government 4,223,670 4,619,401 4,732,331 4,642,935 4,736,885 5,122,152 5,103,378 5,422,805 4,858,721
Public safety 11,018,419 12,001,813 12,352,418 12,852,119 13,476,656 14,162,638 14,400,420 15,287,575 15,800,938
Health, community services and recreation 3,230,938 3,480,885 3,865,578 4,084,948 4,086,513 4,305,709 4,414,673 4,720,477 5,584,184
Public buildings and services 7,876,895 8,180,067 8,301,848 8,991,673 9,363,365 9,906,759 10,048,539 10,055,161 10,196,576
Other agencies 3,157,861 3,273,003 3,514,658 3,610,935 3,783,720 4,227,552 4,294,283 4,291,329 4,747,617
Education 39,428,576 40,341,426 42,228,691 44,817,879 45,224,974 48,293,846 50,380,309 51,590,324 51,391,657
Tax increment financing - - - - - - 215,483 432,033.00 165,133
Unclassified 327,812 389,598 65,639 263,702 597,262 166,994 63,115 54,451 118,216
Restricted grants 6,510,909 6,822,298 7,282,380 8,248,872 7,787,297 9,098,706 8,360,660 8,479,740 8,232,148
Capital outlay*8,794,651 10,675,201 8,681,772 11,762,832 9,100,357 8,038,242 16,118,777 20,818,168 12,799,978
Debt service
Principal 5,730,088 2,232,944 4,110,250 2,748,866 4,237,096 2,044,428 2,136,415 12,423,331 3,862,188
Interest 3,299,332 3,080,468 3,120,028 3,098,248 3,095,434 2,436,120 2,373,922 2,472,643 2,375,397
Other charges 10,028 5,570 37,467 5,070 4,850 299 6,000 61,952 45,988
Total expenditures 93,609,179 95,102,674 98,293,060 105,128,079 105,494,409 107,803,445 117,915,974 136,109,989 120,178,741
Deficiency of revenues under expenditures (5,450,458) (6,226,273) (4,214,402) (4,552,796) (2,764,070) 7,992,129 (6,279,114) (17,326,502) (2,092,246)
Other financing sources/(uses)
General obligation debt 4,397,511 5,443,400 2,650,000 4,333,000 3,555,000 - 3,100,000 3,100,000 2,086,100
Financing proceeds - - - - - - 7,091,928 9,596,640 -
Sale of assets 232,259 131,773 106,895 120,479 320,034 161,439 104,620 135,849 117,558
Transfers to other funds (3,663,860) (5,369,448) (3,131,050) (3,099,137) (3,300,247) (2,690,305) (2,865,418) (1,789,024) (2,015,003)
Transfers from other funds 2,865,242 4,421,032 2,293,244 2,237,847 2,428,383 2,151,217 2,126,239 2,550,127 1,377,105
Total other financing sources 3,831,152 4,626,757 1,919,089 3,592,189 3,003,170 (377,649) 9,557,369 13,593,592 1,565,760
Net change in fund balances (1,619,306)$ (1,599,516)$ (2,295,313)$ (960,607)$ 239,100$ 7,614,480$ 3,278,255$ (3,732,910)$ (526,486)$
Debt service as a percentage of noncapital expenditures 11.17%6.30%8.27%6.08%7.74%4.26%4.01%11.19%5.56%
Only nine years have been presented because 2003 was the year GASB Statement No. 34 was implemented.
*Capital outlays under the modified accrual basis differ from capital outlays on the statement of activities due to capitalization thresholds and
budgetary requirements.
CITY OF BANGOR, MAINE
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years(modified accrual basis of accounting)
III - 8
Table 6
CITY OF BANGOR, MAINE
Assessed Value and Estimated Actual Value of Taxable Property*
Last Ten Fiscal Years
Total Taxable Total
Fiscal Estimated Estimated Personal Assessed Direct
Year Residential Commercial Property¹Value Tax Rate
2002 841,857,900 504,871,000 241,682,200 1,588,411,100 22.78
2003 896,351,100 516,447,000 278,430,400 1,691,228,500 22.52
2004 922,374,500 549,399,100 268,555,600 1,740,329,200 22.27
2005 990,170,000 618,388,000 259,687,300 1,868,245,300 20.97
2006 1,091,628,800 713,822,300 254,225,800 2,059,676,900 19.31
2007 1,178,745,758 785,599,342 259,703,500 2,224,048,600 18.33
2008 1,275,227,064 875,870,136 254,991,600 2,406,088,800 17.74
2009 1,219,093,120 1,081,082,580 244,740,100 2,544,915,800 17.99
2010 1,255,964,001 1,113,779,399 257,018,100 2,626,761,500 17.98
2011 1,227,148,219 1,088,225,781 256,321,000 2,571,695,000 18.09
*It is City policy to assess at 100% of estimated actual value.
¹Personal Property consists of machinery and equipment.
Real Property
III - 9
Table 7
CITY OF BANGOR, MAINE
Property Tax Rate - Direct and Overlapping GovernmentsLast Ten Fiscal Years
General General Total
Fiscal City Fund Debt Direct Penobscot Total Tax/
Year Government Service Education Tax Rate County (Mill) Rate
2002 9.81 0.73 12.24 22.78 0.97 23.75
2003 9.51 0.74 12.27 22.52 1.08 23.60
2004 9.26 0.79 12.22 22.27 1.08 23.35
2005 8.20 1.18 11.59 20.97 1.08 22.05
2006 7.97 1.14 10.20 19.31 1.09 20.40
2007 7.79 1.18 9.36 18.33 1.07 19.40
2008 7.69 1.18 8.87 17.74 1.06 18.80
2009 8.12 1.16 8.71 17.99 1.06 19.05
2010 8.01 1.27 8.70 17.98 1.07 19.05
2011 7.94 1.40 8.75 18.09 1.11 19.20
III - 10
Table 8
CITY OF BANGOR, MAINE
Principal Property Taxpayers *June 30, 2011
2011 2002
Assessed % of Total Assessed % of Total
Taxpayer Business Value Rank Tax Base Value Rank Tax Base
Bangor Historic Track Racino 117,846,300$ 1 4.58%- -
General Electric Manufacturer 64,318,500 2 2.50%30,819,755$ 2 1.94%
Bangor Mall LLC Shopping mall 57,608,500 3 2.24%- -
Bangor Hydro Electric Utility 38,377,400 4 1.49%27,943,600 3 1.76%
Wal Mart Stores Retailer 21,249,800 5 0.83%9,421,200 9 0.59%
QV Realty Trust Real estate interests 15,859,900 6 0.62%10,222,700 6 0.64%
Inland Western Parkade Shopping mall 15,396,100 7 0.60%- -
Grant Trailer Sales Inc Real estate interests 15,335,600 8 0.60%- -
Home Depot U.S.A. Inc Retailer 14,249,400 9 0.55%- -
Harvest Sunbury Village Retirement Living 14,106,400 10 0.55%- -
BANMAK Associates Shopping mall - - 58,050,400 1 3.65%
Bangor Savings Bank Commercial bank - - 21,162,300 4 1.33%
Webber Oil Company Fuel distributor - - 10,737,000 5 0.68%
Airport Mall Associates Shopping mall - - 10,140,400 7 0.64%
Cabrel Company Real estate interests - - 9,697,300 8 0.61%
Sams Real Estate Trust Retailer - - 8,636,400 10 0.54%
Totals 374,347,900$ 14.56%196,831,055$ 12.39%
*Source - City of Bangor Tax Commitment.
III - 11
Table 9
% of
Subsequent Total Total Tax
Fiscal Gross Tax Abate-Net Tax % of Year Tax Collection
Year Levy ments Levy Amount Net Levy Collections Collections to Net Levy
2002 36,893,245 208,211 36,685,034 35,633,029 97.13%1,001,319 36,634,348 99.86%
2003 39,081,183 311,677 38,769,506 37,785,056 97.46%918,597 38,703,653 99.83%
2004 39,866,850 172,868 39,693,982 38,589,047 97.22%1,035,621 39,624,668 99.83%
2005 40,474,184 160,117 40,314,067 39,206,172 97.25%1,046,763 40,252,935 99.85%
2006 41,099,990 632,397 40,467,593 39,716,755 98.14%645,455 40,362,210 99.74%
2007 41,990,985 269,636 41,721,349 40,819,923 97.84%798,483 41,618,406 99.75%
2008 44,082,476 341,521 43,740,955 42,847,656 97.96%767,458 43,615,114 99.71%
2009 47,235,370 275,489 46,959,881 45,688,356 97.29%1,103,749 46,792,105 99.64%
2010 48,719,847 588,817 48,131,030 46,205,428 96.00%1,386,852 47,592,280 98.88%
2011 48,362,646 168,932 48,193,714 46,857,606 97.23%- 46,857,606 97.23%
Collected within the
Fiscal Year of the Levy
CITY OF BANGOR, MAINE
Property Tax Levies and CollectionsLast Ten Fiscal Years
III - 12
Table 10
CITY OF BANGOR, MAINE
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
General General Total
Fiscal Obligation Capital Obligation Revenue Primary Per Per Personal
Year Bonds Leases Bonds Bonds Government Capita*Income*
2002 $59,135,992 150,353 42,386,491 4,205,000 105,877,836 3,345.80 11.25%
2003 $57,669,023 326,159 47,854,061 - 105,849,243 3,345.32 11.25%
2004 $60,879,479 3,491 47,994,390 - 108,877,360 3,430.18 11.53%
2005 $59,419,229 - 46,774,080 - 106,193,309 3,412.49 11.47%
2006 $61,003,363 - 45,781,229 - 106,784,592 3,438.67 11.56%
2007 $60,321,264 - 43,809,953 - 104,131,217 3,279.83 11.03%
2008 $56,998,022 - 41,722,545 - 98,720,567 3,157.85 10.62%
2009 $56,687,684 7,091,928 37,623,522 - 101,403,134 3,236.72 10.88%
2010 $61,689,447 - 34,956,548 - 96,645,995 3,073.00 10.33%
2011 $58,455,666 - 31,985,337 - 90,441,003 2,737.40 7.06%
*Source: U.S. Census Bureau.
Governmental Activities Business-type Activities Ratio of Net Bonded Debt
III - 13
Table 11
CITY OF BANGOR, MAINE
Ratio of Net General Obligation Debt to Assessed Value and
Net General Obligation Debt Per Capita
Last Ten Fiscal Years
Fiscal Assessed Net Bonded Assessed Per
Year Population*Value GO Debt**Value Capita
2002 31,645 1,588,411,100 66,818,681 4.21%2,111.51
2003 31,641 1,691,228,500 65,323,120 3.86%2,064.51
2004 31,741 1,740,329,200 69,638,974 4.00%2,193.98
2005 31,119 1,868,245,300 65,988,998 3.53%2,120.54
2006 31,054 2,059,676,900 66,990,510 3.25%2,157.23
2007 31,749 2,224,048,600 65,725,523 2.96%2,070.16
2008 31,262 2,406,088,800 61,824,071 2.57%1,977.61
2009 31,329 2,544,915,800 60,937,500 2.39%1,945.08
2010 31,450 2,626,761,500 65,369,337 2.49%2,078.52
2011 33,039 2,571,695,000 59,310,719 2.31%1,795.17
*Source: U.S. Census Bureau.
**Net Bonded General Obligation Debt Consists of all non-self supporting general obligation debt, and
excludes all Sewer Utility debt of $17,432,204, Airport debt of $7,241,939, Golf Course debt of $533,351
Parking debt of $2,282,846 and Economic Development debt of $3,639,944.
Ratio of Net Bonded Debt
III - 14
Table 12
CITY OF BANGOR, MAINE
Computation of Direct and Overlapping Debt
June 30, 2011
Percentage Amount
Total Debt Applicable Applicable
Outstanding to Bangor to Bangor
Direct Debt
City of Bangor
General Obligation Bonds 90,441,003$ 100.00%90,441,003$
Overlapping Debt -$ -$
Total Debt 90,441,003$ 90,441,003$
III - 15
Table 13
Total Net Debt Legal Percentage of
Fiscal Debt Applicable to Debt Net Debt to
Year Limit Limit Margin Debt Limit
2002 $240,937,500 101,522,483 139,415,017 42.14%
2003 $241,387,500 105,523,084 135,864,416 43.72%
2004 $261,240,000 108,873,869 152,366,131 41.68%
2005 $279,202,500 106,193,307 173,009,193 38.03%
2006 $309,495,000 106,784,592 202,710,408 34.50%
2007 $332,092,500 104,131,217 227,961,283 31.36%
2008 $353,737,500 98,720,567 255,016,933 27.91%
2009 $356,670,000 94,311,206 262,358,794 26.44%
2010 $365,400,000 96,645,995 268,754,005 26.45%
2011 $369,997,500 90,441,003 279,556,497 24.44%
Total State Valuation 2,466,650,000$
Debt Limitation: 15 % of State Valuation 369,997,500
Debt Applicable to Debt Limitation:
General Obligation Bonds:
Municipal 61,138,375
School 11,870,424
Sewer 17,432,204
Total debt applicable to limit 90,441,003
Legal Debt margin 279,556,497$
CITY OF BANGOR, MAINE
Legal Debt Margin InformationLast Ten Fiscal Years
Legal Debt Margin Calculation for Fiscal Year 2011
III - 16
Table 14
CITY OF BANGOR, MAINE
Demographic and Economic Statistics
Last Ten Fiscal Years
Median Per Public Unemploy-
Fiscal Household Capita Median School ment
Year Population *Income*Income*Age*Enrollment**Rate ***
2002 31,645 29,740 19,295 36.1 4,205 3.12%
2003 31,641 29,740 19,295 36.1 4,019 3.40%
2004 31,741 29,740 19,295 36.1 4,006 4.30%
2005 31,119 29,740 19,295 36.1 3,989 4.50%
2006 31,054 29,740 19,295 36.1 3,962 4.40%
2007 31,749 29,740 19,295 36.1 3,913 4.40%
2008 31,262 29,740 19,295 36.1 3,886 5.10%
2009 31,329 29,740 19,295 36.1 3,878 7.80%
2010 31,450 29,740 19,295 36.1 3,821 7.60%
2011 33,039 38,775 25,344 Data not 3,830 7.30%
available
*Source: U.S. Census.
**Source: Bangor School Department.
***Source: Maine Bureau of Labor Statistics.
III - 17
Table 15
CITY OF BANGOR, MAINE
Principal Employers *
Calendar Year
Employees Employer Location Employees Employer Location
1000-4000 Eastern Maine Medical Center Bangor 1000-4000 Eastern Maine Medical Center Bangor
Bangor Mall Bangor Bangor Mall Bangor
University of Maine Orono University of Maine Orono
City of Bangor Bangor City of Bangor Bangor
Hannaford Supermarkets Throughout
Cianbro Corporation Throughout
Wal-Mart Throughout
500-999 Bangor Savings Bank Bangor 500-999 Acadia Hospital Bangor
L.L. Bean Bangor St. Joseph Hospital Bangor
Microdyne Orono Webber Energy Co Bangor
Acadia Hospital Bangor Georgia Pacific Corp Old Town
Verso Corp Paper Mill Bucksport General Electric Corp Bangor
St. Joseph Hospital Bangor Shop & Save Supermarkets Throughout
Community Health & Counseling Bangor
* Source - Bangor, Maine Community & Economic Profile Report.
Published by City of Bangor Community and Economic Development Department.
2010 2001
III - 18
Table 16
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Function
General government 93 91 90 87 88 94 85 80 78 78
Public safety
Police 86 89 86 87 89 90 87 92 94 92
Fire 95 95 97 96 97 94 97 94 93 95
Health, community services and recreation 34 33 31 31 32 39 41 37 41 30
Public building and services 66 68 67 64 68 71 67 69 68 64
Education 574 574 561 571 573 562 618 618 621 621
Sewer Utility 23 23 23 23 23 23 23 23 23 24
Airport 82 72 73 75 76 81 87 88 81 82
Park Woods 3 3 3 3 3 3 3 3 2 2
Parking 2 2 2 2 2 2 2 2 2 2
Bass Park 9 9 8 9 9 9 7 8 8 7
Municipal Golf Course 3 3 3 3 3 9 3 3 3 3
Economic Development 3 2 3 3 3 3 3 2 3 4
Totals 1,073 1,064 1,047 1,054 1,066 1,080 1,123 1,119 1,117 1,104
* Source - City of Bangor Human Resource Department.
CITY OF BANGOR, MAINE
Full-time Equivalent City Government Employees by Function*
Last Ten Fiscal Years
III - 19
Table 17
CITY OF BANGOR, MAINE
Operating Indicators by Function*
Last Ten Calendar Years
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Function
Code enforcement
Building permits 471 474 522 514 537 550 485 501 427 518
Certificates of occupancy 295 358 342 341 432 446 430 440 341 448
Sign permits 85 96 98 107 115 116 118 103 90 96
Police
Calls for service Unavailable 22,213 24,407 23,945 27,052 28,157 32,392 34,329 32,351 30,167
Fire
Calls for service Unavailable 7,528 7,470 7,805 7,492 7,992 7,477 7,990 7,357 8,000
Sewer
Treated flow (billions of gallons)2.63 3.14 3.42 2.75 4.23 3.62 3.21 3.89 3.55 2.81
Biosolids (cubic yards)8,683 8,308 9,379 9,280 9,348 9,775 10,043 10,561 10,509 9,046
* Source - City of Bangor Departmental records.
III - 20
Table 18
2003 2004 2005 2006 2007 2008 2009 2010 2011
Function
Public safety
Police:
Stations 1 1 1 1 1 1 1 1 1
Vehicles 42 56 57 51 52 47 50 54 54
Fire:
Stations 3 3 3 3 3 3 3 3 3
Vehicles 25 20 20 24 27 28 31 32 35
Public works
Streets (miles)422 422 422 422 422 427 429 429 429
Sidewalks (miles)99.6 99.6 99.6 99.6 99.6 99.6 99.6 99.6 101.4
Parks and recreation
Parks 29 29 29 29 29 29 29 29 29
Parks acreage 950 950 950 950 950 950 950 950 950
Public swimming pools 1 2 2 2 2 2 2 2 2
Public golf courses 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5
Indoor ice arena 1 1 1 1 1 1 1 1 1
Semi-pro baseball stadium 1 1 1 1 1 1 1 1 1
Sewer
Treatment plants 1 1 1 1 1 1 1 1 1
Pump stations 5 5 5 5 5 5 5 5 5
Miles of sanitary sewers 103 103 103 103 103 103 103 103 103
Miles of combined sewers 44 44 44 44 44 44 44 44 44
Only nine years have been presented because 2003 was the year GASB Statement No. 34 was implemented.
* Source - City of Bangor Departmental records.
CITY OF BANGOR, MAINE
Capital Asset Statistics by Function*
Last Ten Fiscal Years
Fiscal Year